Who’s the Peloton?Shareholders: Warren Buffett or “The Best Place to Go”
Editor’s note: The topic “Where Peloton Sells itself” topped the list of most searched topics on U.S. retail forums. An investor in Peloton used six metrics to gauge the most likely acquisition candidates and found Berkshire at the top of the list.Peloton $PTON has become the talk of Wall Street after a recent resurgence in popularity.Retail interest in the US has also been strong, with Peloton topping the list with 2,070 discussions on retail forums in the past 24 hours.But most of the talk this time was about where Peloton would sell himself.Peloton (Peloton, Fortune 500), the popular fitness class and equipment maker, saw its shares jump 20.93% on Feb. 7 on news of a “sell.”Peloton jumped another 25% yesterday after the company announced it would replace CEO John Foley and cut about 2,800 jobs in a bid to revive flagging performance.At first glance, Peloton looks like it’s riding high. But the company, which has been public for just over two years, has fallen nearly 74.29% over the past year. Once worth nearly $50 billion, it’s now worth just $12.3 billion.What is the origin of Peleton?Peloton, which was founded in 2012, specializes in high-end exercise bikes and treadmills that start at $1,495 and $2,495.In a sign that it is struggling to match the high valuations of capital markets, the company has also added technology and sports and social elements to its selling points.In addition, the company has received a vote of “Internet stock god,” a frequent topic among online stock analysis bloggers.Peloton’s business spans both hardware and software.In terms of hardware, it mainly designs, manufactures and sells exercise bikes and treadmills.In terms of software, it is the development of app, which contains constantly updated fitness courses, such as treadmill, thermal cycling, yoga, meditation, exercise classes, etc., and also stimulates users to punch in through social functions for network communication.Peloton debuted on Nasdaq on September 26, 2019, and its stock soared in early 2020 after the COVID-19 pandemic.Peloton’s stock soared by about 440% in 2020, peaking at $171.09 in January 2021.Also become a lot of American retail investors love stocks.However, with the successful rollout of vaccines, the high growth during the pandemic could not be sustained as people began to leave their homes in the post-pandemic era.Peloton reported a net loss of $439 million, or $1.39 per share, on Q2 revenue of $1.134 billion.Add in core product fatalities, management flaws, and more, and Peloton’s stock is heading for a slump in 2021.Where will Peloton sell himself?News of Peloton selling himself also took off in the market as shareholders backed Buffett and Berkshire Hathaway’s stock price broke.Who will be the ultimate buyer of the Peloton?Blackwells Capital LLC, a shareholder in Peloton, recently pointed to Buffett’s Berkshire Hathaway $BRK.B as the “best home” for the company, but there are also plenty of eyes on Amazon $AMZN, Nike $NKE and Apple $AAPL.I think they’re very likely.Blackwells Capital, which owns less than 5 percent of Peloton, has been calling for CEO John Foley to step down.In a 65-page report to Peloton’s board on Feb. 7, Blackwells Capital listed 19 potential strategic buyers it believed were most likely to acquire Peloton, measuring six metrics ranging from cost synergies to the ability to sell new products.Buffett’s Berkshire Hathaway, Adidas $ADDYY, Lululemon $LULU, Nike, Apple, Google $GOOGL, and SoftBank $SFTBY are all on the list, with Buffett’s Berkshire Hathaway topping the list.Amazon is also interested, according to multiple news organizations.There’s no doubt that buying Peloton could help Amazon take the health care industry to the next level.In 2020, Amazon introduced a fitness band that detects activity and sleep patterns, and late last year, the company launched a second Halo View, offering a $3.99 monthly health subscription that includes fitness plans, recipes and additional tests.But That could be an awkward match, says Cowen analyst John Blackledge.He noted Monday that Amazon “typically sells mass market products and services,” while Peloton, which costs $1,495 for an entry-level bike, is more of a “premium” brand.Before Peloton went public, reports suggested Nike had considered buying the company.Nike’s interest in Peloton is easy to understand: it’s a sports brand with a similar customer base, it would strengthen its tech identity, and, more importantly, it would appeal to Generation Z, the demographic Nike needs most.In addition, Wedbush analysts said Apple’s acquisition of Peloton could help boost its presence in the health and fitness market.Apple, through its Fitness+ subscription service and Apple Watch strategy, will be able to leverage Peloton services and flywheel offerings to significantly enhance its healthcare program, which has been a key strategic pillar for the company.But there are problems with the deal. Peloton’s large, expensive hardware doesn’t fit with Apple’s traditional product turnaround strategy, and the company already has its own fitness software.Although the market is very hot about who will buy Peloton, it should be noted that the US government is very sensitive and cautious about the acquisition of giant companies in recent years. No matter which giant companies want to buy Peloton, they need to climb the peak of American supervision first.Any bid for Peloton would also require the support of co-founder John Foley and other insiders because of the company’s two-tier structure, which gives them veto power over major decisions.Risk and disclaimer: The above content only represents the author’s personal position and opinion, does not represent any position of Huasheng, and Huasheng cannot confirm the authenticity, accuracy and originality of the above content.Before making any investment decision, investors should consider the risks of investment products in light of their own circumstances.If necessary, consult a professional investment adviser for advice.Huashen does not provide any investment advice, nor does it make any promises or warranties.This article comes from Sina Group’s Hong Kong and The United States stock service platform Huasheng tong APP information column, if you need to reprint, please indicate the source!