What is Peloton?
In an article this morning following the release of Peloton's S-1 prospectus, Bloomberg's Drew Singer spoke with Triton's Rett Wallace about the future of the company that sells expensive excercise bikes and treadmills bundled with subscription-based access to live streaming workout videos. "'It’s GoPro meets Fitbit meets Yeti meets Canada Goose,' said Wallace. 'This will give the bulls and bears ammo to throw at each other. And Peloton will argue it’s greater than the sum of its parts.' Valuation may ultimately turn on how far into the future investors are looking, as Peloton has a transformation ahead of it. The prospectus revealed that Peloton is still very much oriented toward selling more bikes, Wallace said. 'I was surprised at how much of the revenue mix is still hardware. And at $2,000, those bikes will never be replaced or upgraded. So the ongoing opportunity is all about the subscriptions." Full article on Bloomberg - HERE