Why Peloton Interactive Shares Are Sinking Today
Portfolio Pulse from Lekha Gupta
Peloton Interactive Inc (NASDAQ:PTON) shares plummeted after reporting mixed Q2 financial results and projecting Q3 2024 revenue below expectations. Sales decreased 6% Y/Y to $743.6 million, slightly above consensus, but EPS loss was $(0.54), missing the consensus loss of $(0.53). Membership and app subscriptions declined, while gross profit increased 27% due to connected fitness products. Operating expenses dropped 14%, and adjusted EBITDA loss improved. Peloton's cash position remains strong at $798.1 million. The company anticipates lower FY24 revenue than consensus and expects positive free cash flow in Q4 2024, missing the full-year goal. Shares fell 23.2% to $4.269.
February 01, 2024 | 4:18 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Peloton's mixed Q2 results and lower-than-expected Q3 2024 revenue forecast led to a significant stock price drop. Despite a slight sales beat, EPS loss and declining memberships contribute to investor concerns.
The significant drop in Peloton's stock price is directly attributed to its mixed Q2 financial performance and disappointing revenue guidance for Q3 2024. The slight beat in sales was overshadowed by a wider-than-expected EPS loss and declining memberships, indicating potential challenges in growth and profitability. The market's reaction, a 23.2% decrease in stock price, reflects these concerns and the impact of the lower-than-expected revenue forecast on investor sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100