Peloton (PTON) Launch Cheaper Training, Will Investors Be Swayed?

Trade PTON Stock Your Capital Is At Risk
Ollie Martin
Updated: 5 Apr 2022

Key points:

  • Peloton hopes to win back investors with pivotal pricing models
  • The new training product marks the first product from new CEO Barry McCarthy
  • PTON stock continued to sell off today, reaching a daily loss of up to 5%

Peloton (NASDAQ: PTON), the figurehead stock of the pandemic. The at-home fitness specialist grew exponentially over the pandemic but fell just as fast when lockdowns faded away and people returned to the gym. Indicative of volatile pandemic trends, Peloton’s glory days were short-lived, and soon the company has lost over 80% of its share value; panicking to find a new direction and tempt back investors.

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So far, various products including cycling shoes have been thrown around the Peloton brand, but it seems nothing has stuck. PTON stock keeps falling. Consumers don’t seem interested anymore. 

The company needed new management, and that’s what followed. Barry McCarthy has recently taken over from former CEO John Foley in a bid to revitalize the company and welcome back shareholders. Today, Peloton has launched its first major product since McCarthy’s leadership; a strength training program called Peloton Guide.

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Not only is the launch today, but the company has also made some last-minute discounts, cutting the starting price to $295, 40% lower than the original price plan. From today, Guide will be available to purchase in the US, Canada, UK, and Australia.

The Guide will be available to existing all-access members at no extra cost, includes a TV-connected camera that displays workouts and tracks movement, and offers users a different workout from the usual cardio focus the brand has become known for. 

It’s difficult not to glaze over the new role of Barry McCarthy for what might just seem like another product launch as the company clutch at straws. It will be of critical interest to investors to see how McCarthy intends to revitalize the struggling brand through a variety of pricing models.

If the company can widen its market and attract more customers, then it might stand some chance of returning to profitability in the not-so-distant future. Today, PTON sold off around 4.5%, currently trading around the $25.5 mark with a year-over-year loss of 77%. 

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