Billionaire George Soros is Selling These 5 Stocks in 2022

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In this article, we discuss 5 stocks billionaire George Soros is selling in 2022. If you want to see more stocks discarded by the billionaire, check out Billionaire George Soros is Selling These 10 Stocks in 2022.

5. Peloton Interactive, Inc. (NASDAQ:PTON)

Number of Hedge Fund Holders: 60

Peloton Interactive, Inc. (NASDAQ:PTON) is a New York-based company that offers interactive fitness products and exercise lessons to clients in North America and internationally. George Soros’ Soros Fund Management owned 373,083 shares of Peloton Interactive, Inc. (NASDAQ:PTON) in the quarter ending December 2021, worth $13.3 million. The fund dumped the shares entirely in Q1 2022.

UBS analyst Arpine Kocharyan on May 18 slashed the price target on Peloton Interactive, Inc. (NASDAQ:PTON) to $13 from $30 and maintained a Sell rating on the shares. The analyst projects lower than expected profitability in Q4, since the management is guiding negative margin under hardware business in Q4 due to lower pricing, surplus inventory, higher storage costs, and lack of fixed cost leverage due to falling demand forecast. The analyst is also cutting her forecasts for Peloton Interactive, Inc. (NASDAQ:PTON) sales and EBITDA in the outer years.

Insider Monkey’s fourth quarter database suggests that 60 hedge funds were bullish on Peloton Interactive, Inc. (NASDAQ:PTON), compared to 62 funds in the last quarter. In the first quarter of 2022, Philippe Laffont’s Coatue Management held a leading stake in the company, with 8.6 million shares worth $227.5 million. 

Here is what Merion Road Capital has to say about Peloton Interactive, Inc. (NASDAQ:PTON) in its Q1 2022 investor letter:

“Given what I have discussed so far you might be surprised that I built a new position in Peloton (“PTON”). PTON has had a rollercoaster ride in the public markets. Following their 2019 IPO at $29 the stock rocketed to over $160 at the peak of the covid hype, before tanking to its current price in the mid‐$20’s. The company has basically checked the box on any negative event you could think of. A few standouts include cutting guidance (May 2021, November 2021, January 2022), major strategic gaffes (overbuilding supply capacity, flip‐flopping on price cuts), and poor/misleading communication (raising capital 2 weeks after stating there was no need to raise capital). So why would I own this?

Peloton (the product, not the stock) has a strong brand name, value proposition, and customer loyalty. Despite their woes the company has built an established base of users that should be highly valued. The market is currently telling us that their 2.7mm users are worth $2,600 per subscriber, or just 7.5x subscription gross profit. Simplistically this assumes 1/7.5x = 13% annual attrition which is more draconian than current levels of ~10% (of course giving no credit for future growth)…” (Click here to see the full text)

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