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(CNBC)   The wheel is falling off Peloton   ( divider line
    More: Obvious, Fiscal year, Peloton CEO Barry McCarthy, Peloton's sixth consecutive quarter, Million, Cash flow, Income statement, fiscal fourth quarter, Churn rate  
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785 clicks; posted to Business » on 25 Aug 2022 at 9:37 AM (23 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook

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2022-08-25 9:17:04 AM  
17 votes:
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2022-08-25 9:02:18 AM  
12 votes:
There's nothing wrong with demanding constant growth and returns on investments from companies like this, shut up capitalism can hear you.
2022-08-25 10:15:26 AM  
9 votes:
You can get clothes hangers from Target for about tree fiddy.
2022-08-25 10:49:17 AM  
5 votes:
An exercise bike with a very small television duct taped to the front... Peloton's main problem is that they've developed a technology that belongs somewhere in the distant future, it is too advanced, too complex, for society as it is now.
2022-08-25 9:55:08 AM  
3 votes:
Six quarters of losses. How can that happen? They make a decent margin of riskless revenue off of the subscription services. Having over a billion dollars in inventory is frankly baffling in the age of JIT. You would think that seasonal changes in sales would be more easily adjusted for. The markup on their hardware is outrageous - so I have a hard time believing that they aren't getting a tremendous revenue stream from new sales regardless of inventory build-up.

That leaves wasteful advertising and excessive executive compensation / facilities as the cause of their losses.
2022-08-25 9:58:15 AM  
3 votes:
What?!? You're kidding me!  Peloton is still in business?
2022-08-25 12:11:22 PM  
3 votes:

Wave Of Anal Fury: Good to see that they're durable for the cost.  It would be pretty awful if they're that expensive and only last a short period of time.

Just as a reality check, for reference these also last forever.

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2022-08-25 10:16:30 AM  
1 vote:

NewportBarGuy: madgonad: That leaves wasteful advertising and excessive executive compensation / facilities as the cause of their losses.

They bought into their own bullsh*t and kept ramping up production (inventory) like their sales would NEVER go down.

Add in the treadmill thing and the end of the pandemic and you have a fad company going boom.

A smart CEO would have banked company money and planned for an eventual return to a niche market, which is what they are. But the majority of executives these day just want the quick cash and leave.

I just checked their income statements.

It isn't just overproduction. Their cost of revenue (making / distributing) their products is about half of their problem. The other half is operating expenses. Their revenue has only taken a small hit (maybe 7%)
2022-08-25 10:23:11 AM  
1 vote:
Apparently their products are overpriced and their subscriptions are overpriced. Unless you really manage that well, like Apple, you can't keep it going.
2022-08-25 10:31:18 AM  
1 vote:
as the company grinds through its turnaround plan

Turnaround plan?  They have one business model - sell expensive exercise bikes that have no value unless users sign up for a recurring subscription.  Good luck tweaking that.
2022-08-25 11:36:36 AM  
1 vote:

Wave Of Anal Fury: Benevolent Misanthrope: Wave Of Anal Fury: inglixthemad: For those who don't think that's a lot of people... spin classes in many gyms are so insanely popular you have to show up 30 minutes early. Yes, that fracking popular. My wife got a Peloton because she hated getting there (only) 15 minutes early because of a meeting, and not being able to take the class.

That's nuts.  I've gone through a number of stationary bikes through the years (five of them), and when I added up the total cost once, it amounted to half of a single Peloton at its original price.

This assumes that a) Pelotons last forever and b) the subscription is free.  Neither of which is true.

I know the sub isn't free.  I've wondered, though, how durable they are.  My first bike, the most expensive at around $700, lasted around 9 years, I think.  I've cheaped out on the others, though, so I've only gotten a couple years out of each of them.

My wife rides her Peloton about every day averaged out. The bike is at least seven years old, and no issues of durability. We are obsessive about taking care of our stuff.
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