Peloton’s Recent Developments Paved the Way for Higher Growth Projections

Peloton recently unveiled their Global Fitness Platform, which is the 1st in the world, together with acquiring Precor, leads them to expect a robust pandemic growth for the year 2021. Stifel rated it as a ‘buy’ and gave a profit-taking zone at the $160 mark. From being down below $20 in March 2020, Peloton’s stock price as of writing is currently trading around $146-$148 area.

Peloton (PTON), which was founded in 2012, is an exercise equipment and media company that is currently making waves with their introduction of ‘a new way of working out’ that fits the world’s current situation under the Covid-19 pandemic. This ‘first-of-its-kind’ subscription platform combines the best equipment, proprietary networked software, and a state-of-the-art streaming digital fitness and wellness content. According to a press release of the company, Peloton’s mesmerizing content is accessible through the Peloton Bike, Bike+, Tread, Tread+, and Peloton App, which allows access to a complete package of fitness classes, on any iOS or Android device, Apple TV, Fire TV, Roku TVs, Chromecast, and Android TV.

Just recently, the company announced that they have purchased one of the largest global commercial fitness equipment providers, Precor, in their largest transaction to date, which is worth $420 million. The Precor acquisition gave Peloton an additional 625,000 square feet of manufacturing facility in the United States and a group of dedicated employees with lots of experience in designing, engineering, and innovating fitness equipment. This deal will enable Peloton to ramp up its production and to start making a variety of new exercise products.

The abrupt rise of Peloton’s subscribers from just about 669k in the 1st quarter of 2020 to almost 2 million subscribers in the 1st quarter of 2021, gave the company a whopping 113% increase in subscriber numbers.