Peloton IPO 🚴‍♀️

Peloton just filed for their IPO

I have a feeling that theirs will be slightly better received that WeWork’s

but to add a little balance

there’s definitely a few hints of We in the filing too

2 Likes

If they want to raise $500 million all they have to do is sell about 12 bikes and memberships, they’re not cheap. Only bitter because I’ve really wanted one for ages but can’t justify the cost :grin:

Health, fitness and general wellbeing is huge at the moment, I can see the IPO going really well for them.

image

3 Likes

I’d be very wary of their IPO. It’s fitness, and they go through crazes and extreme hype cycles. People generally don’t seem to like exercising, so they jump onto the next bandwagon in search for something cool and new in the vain hope that it’ll be the magic bullet that will keep them going.

Who remembers Barre from 2005, Zumba in 2012, Spinning in 2013, cross-fit in 2017, HIIT in 2018, etc? Some of those have proven scientific benefits and are here to stay, but none of them have recovered the crazy lofty heights of the top of their hype cycle.

3 Likes

The real question I ask myself here is what is their genuine long term competitive advantage? Great bikes? Network effect? Customer service?

What’s really unique about what they do that has such as a low churn rate by now?

Ultimately this feeds back into "Quality” and especially long term "return & profitability” which in my view, THE most important thing to think about for investing in an IPO, where the valuation is clearly irrelevant and momentum is clearly strong otherwise it won’t even bother IPOing itself.

3 Likes

Interested to see how the first few weeks goes

2 Likes

Yeah it feels like there’s enough hype around them to create a Beyond Meat type situation and the comments in the story back that up. But on the flip side, this is a little bit more niche than the trend for vegan food.

1 Like

Forbes are massive fans

3 Likes

Booking my first store visit to theirs in Canary Wharf

1 Like

The muted opening marked the third-worst trading debut in a decade for companies that have raised at least $1bn (£810.4m) in investment

1 Like

Long but good piece on Peloton from a freelance journalist.

I hadn’t realised that they offer classes that don’t require the bikes, although I’d like to know how much of their revenue comes from those. The points about the importance of their network of users adding value beyond the bikes themselves are valid and it’s interesting to hear some example of what that looks like to users. The CEO is also selling the company extremely hard in my opinion, which is not unusual for a tech company CEO but it sounds a bit over the top..