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Peloton (PTON): The Apple and Netflix of the Fitness IndustryIf you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight. What is Peloton Interactive (PTON)? - Peloton is a home fitness company that offers fitness products such as an indoor cycle, and a treadmill, as well as live workout content - Peloton is similar to Apple (AAPL) in that it promotes the establishment of a hardware-based ecosystem - It’s also similar to Netflix (NFLX) in that it offers various fitness content in subscription form Financials - They initially anticipated $1.72 billion in revenue for 2020, which has been modified to $1.74 billion due to their explosive growth - This means that PTON demonstrates a 89% year-over-year growth in revenue - Out of their total revenue, 79% consists of sales of connected fitness products, and 20% from their subscription service - PTON is one of the few stocks that has benefited from the pandemic. - With an increasing number of people staying indoors, wanting to exercise, demand for Peloton’s products and services skyrocketed. - Due to the Coronavirus (COVID-19), they have managed to be profitable for the fourth quarter with an Earnings per Share (EPS) at 27 cents. - While they are not extremely profitable yet, as PTON is a growth stock, the fact that they have $500 million in cash proves that they will be financially stable for the short term. Business Analysis - The fitness machines sold by Peloton are not normal indoor cycles and treadmills with screens attached - These fitness machines, which cost $2,245 and $4,295, apply cutting-edge technology that allow users to meticulously control the angle and resistance. - Moreover, these products provide accurate data on the user’s athletic performance. - The hardware provided by Peloton Interactive are optimized for the contents they provide. - PTON’s instructors are 30 of the most famous fitness influencers on social media. - As such, they could expand their streams of revenue to paid advertisements, and ecommerce opportunities, diversifying the business. - They offer two subscription plans: - A ‘Connected Fitness’ plan based on the hardware they offer - And a digital membership that is offered separately - Connected Fitness allows users to participate in live cycling sessions, and receive immediate feedback from the instructor - The number of users subscribing to Connected Fitness is skyrocketing, with a 94% increase in users compared to that of the last quarter - The number of subscribers for Connected Fitness surpassed 1 million in 2020 May - The digital membership subscription does not require a Peloton hardware, and offers various types of content besides running and cycling, such as yoga, meditation, and boot camps. - Their customer churn rate remains extremely low at 0.65% every quarter, while the number of users continue to grow every quarter Technical Analysis - We can see that prices have been in a phase of accumulation for a long time since later 2019 - As prices traded within a descending parallel channel, we saw a sharp breakdown caused by the market drop, which was triggered by the Corona Virus (COVID-19) - Unlike other companies that were severely affected by the virus, the pandemic was an opportunity for Peloton to grow. - As a result, we saw prices break through the $40 resistance zone, and rally in a parabolic trend - Along the way, it has undergone a phase of re-accumulation, before reaching its all-time high at $91.17 - Currently, we have seen prices cool off, bouncing at $79.34 where the 0.236 Fibonacci support and parallel channel trend line support converge - The 20 Simple Moving Average (SMA) is also a good indicator of PTON's bullish trend, as well as strong support. - Based on fundamentals, unless we see a corrective confirmation below $80, we could anticipate new all-time highs for PTON. Conclusion Peloton is on its way to completing a hierarchical process of 'hardware-software-content-community' funneling users into their ecosystem. This ecosystem that Peloton is designing has been attempted by many, but successfully done by only a few. With the development of each elements and growth as a whole, we could expect a huge augmentation in the barrier to entry. One thing to note about growth stocks such as PTON is that the essence of the business is rooted on tech. To say Peloton Interactive (PTON) is another fitness-related company like Fitbit (FIT) is to compare Amazon (AMZN) to bookstores and Tesla Motors (TSLA) to automotive companies.
NASDAQ:PTONLong
by Michael_Wang_Official
What is the path ahead for Peloton?Peloton Interactive, has been in a strong “Go” trend, one that perhaps we should have all seen coming at the onset of global lock down. After rallying over 250% since the “Go” flag on April 8th we are seeing a pullback from the most recent high.
The GoNoGo Trend has painted a couple of paler aqua bars indicating slight weakness in the “Go” trend and this price action has caused the GoNoGo Oscillator to fall to the zero line. There is enthusiasm in general in this stock as we have seen heavy volume as price has run up to recent highs. We will look to see if the Oscillator can hold the zero line and find support there. If it bounces off zero we will see that as a resurgence in the current “Go” trend.
NASDAQ:PTON
by GoNoGoCharts
2
The Distribution has started for Peloton stocks“Good performance ... Earnings are higher than expected .... the number of subscribers has doubled…. the company has benefited from the coronavirus ... it will hit 100 soon ... blah blah blah blah blah blah “ In recent days, we have seen an increase in activity on the Peloton Interactive PTON stock market. This activity is primarily due to the profits, which the company read about on September 10th. There is a growing uptrend in the background, and emotionally, ordinary investors from the public are looking to enter into longs. But from my point of view, it would be a rash decision, because we see signals of weakness on the chart. Black arrows point to supply bars (price accelerated from top to bottom on rising volumes). Professional traders use market buzz to distribute the maximum number of shares they buy far below $ 40 per share. And now they are recording a doubling of profits. And they closing longs around a top that is just beginning to form. What's next? I do not share the general optimism. While I support fitness and a healthy lifestyle, I also support informed decisions when buying stocks, so I highly expect a slowdown in growth. And the share price may decline until the end of 2020.
NASDAQ:PTON
by fintechzoom
2