Three, Two, One Saddle!

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What's going on?

Okay, Peloton in New York, lets do this: the luxury exercise equipment-maker made its quarterly update count late on Wednesday, and its stock dug deep to climb 17% higher on Thursday. Great job, you smashed it!

What does this mean?

$2000 price tag or not, Pelotons workout bikes didnt seem too expensive for the higher-than-expected number of customers who bought them last quarter, which led to 66% higher revenue versus the same time last year. Likewise, Pelotons digital subscription revenue rose by 64% as would-be gym bunnies hunkered down in their rabbit holes, only popping their heads up to scout out fresh workout content. And in whats become a rare feat among recent earnings reports, the company even raised its revenue forecast for this quarter.

Why should I care?

For markets: Theyre neck and neck!


Since the companys stock marketdebutlast year, analysts have been debating whether Peloton would attract and keep enough customers to become a lasting business. And its latest update added fuel to both sides fires: a raft of new customers suggested coronavirus mightve accelerated the home workout trend, sure, but the sky-high percentage of monthly rather than annual subscriptions hinted customers might be poised to flock back to their gyms (tweet this). Still, the naysayers seem to be losing the argument for now: Pelotons stock was up 34% this year before Thursday.



For you personally: If its good enough for you


In a textbook example of how a brand can try to increase its customer appeal, Pelotons planning to broaden its product range with a rowing machine and a cheaper treadmill. The company might be hoping that if it turns you into a die-hard customer, youll become an investor too. Warren Buffett, after all, reportedly invested in Coca-Cola because he liked the taste of the soft drink and figured others would too making the business one he understood and, in turn, meeting one of his investment conditions.

Originally posted as part of the Finimize daily email.

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