Peloton Interactive Shares Plunge 20% Following Cut to Revenue Outlook


By Denny Jacob

Peloton Interactive, the connected fitness equipment maker, experienced a sharp decline in shares by 20%, falling to $4.45. This drop in stock value comes after the company revised its revenue forecast and warned of a potential failure to meet its cash flow goal.

With a decline of approximately 66% over the past year, Peloton’s stock is currently close to its all-time low closing point of $4.30, which was recorded on October 27.

The revised full-year revenue outlook now stands at $2.68 billion to $2.75 billion, down from the previous projection of up to $2.80 billion. Furthermore, Peloton admitted that it will not achieve its target of generating positive cash flow for the entire year.

However, it is worth noting that Peloton managed to decrease its losses for the fiscal second quarter ended December 31. The company recorded a loss of $194.9 million, or 54 cents per share, compared to a loss of $335.4 million, or 98 cents per share, during the same period the previous year. This result aligns with analysts’ expectations.

In terms of revenue, Peloton saw a slight decline from $792.7 million to $743.6 million. Although this figure is lower than estimates provided by analysts polled by FactSet ($733.2 million), it reflects the ongoing challenge of decreased sales in bikes and other fitness products.

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