-
share value over 2 billion in the first place.
Not $2bn - that's only %15. Total is ~$10bn!
I mean, it's fucked. They've sold 577,000 bikes at £2000 each which is a bit over £1.1bn. If every single bike owner is paying the £39/mo fee that's £270mn revenue annually. Then there's another ~$9bn of mysterious value somewhere in there which I guess represents "potential". From the $9bn potential they lost $1.6bn because of this single advert that's been viewed a mere 2 million times.
I don't pretend to know anything about shares or business but clearly something's very wrong with the system that allows these massive billion-dollar blunders in share prices/tech IPOs/etc. Some people have too much money I guess.
frankenbike-
Me: [glues an iPad to an exercise bike]
Gullible rich idiots: [shutupandtakemymoney.jpg]See also: WeWork, Theranos... actually, fuck it, most tech ventures since 1996
-
Peloton is valued so much because potentially it can get another screen in to folks' faces through which they can be served streaming services, adverts or buy shit and the platform takes a low risk, easy money cut.
Everyone is desperate to be the next platform. Get in early and you can make a lot of money. Obviously you have pick the right emerging technology and clearly a lot of people think Peloton has potential. Personally I don't but there you go.
I don't pretend to know anything about shares or business
Oh really?
but clearly something's very wrong with the system that allows these massive billion-dollar blunders in share prices/tech IPOs/etc
Really.
Pffft. Peloton listed at .29 a share apparently. So they put roughly 10% of it on the Nasdaq. Which was duly bought. It immediately slumped 13%, the third worst trading debut in history for a co. that raised 1Bn - then traded around that .20 figure for a while.
In November, something happened that increased its value by around 15% taking it above the IPO price. There followed a sell off which is attributed to that advert but given the timing its likely a combination of early investors taking back their capital + a bit of profit and those who bought low taking a nice 15% from whatever triggered the bounce.
So is there really a blunder, other than some people don't like the advert *? You know what they about publicity however...
* or you bought its stock
Eejit
Howard
The biggest question I have is how a company that sells exercise bikes has a share value over 2 billion in the first place.
Bikes that don't even move.