The Wheels Are Falling Off Peloton

Peloton announced Monday that John Foley (Executive Chair) would step down from the Board of Directors, effective immediately. In the statement filed with the SEC, Peloton said,

“Mr. Foley’s departure is not the result of any disagreement between Mr. Foley and the Company or its management on any matter relating to the Company’s operations, policies, or practices.”

Foley stepped down as CEO in February, although remained on the board (until today). He was offered an ostensibly generous severance package with stock options that are exercisable through June 30 2025.

This also comes at a time that on September 8th, Peloton agreed that their Chief Legal Officer, Hisao Kushi, agreed to sever ties together. His last day with the company will be October 3, 2022.

The management shake-up comes at a time when the company has been bludgeoned, beaten down mercilessly into a bloody pulp amidst atrocious earnings growth, shrinking sales, and an arguably unmanageable debt burden. There is not really much fundamentally that the company has going for it right now, unfortunately. Just weeks ago the company reported a $1.2 Billion quarterly loss (jesus), and a 30% decrease in revenue. BUT HEY, THEY JUST REGISTERED 20 MILLION ADDITIONAL SHARES FOR EMPLOYEES. Equity in the via common stock is just the lifeblood employees need. This also comes right after they laid off an egregious percentage of their workforce (I think it was something ~760 employees).

With all the aforementioned troubles plaguing the company, let’s take a look at how they stock’s performed…

Yup, adds up. There are very few things in this world more impressive than a company trading at a 90% discount in just one year. I guess that’s what happens when you literal quadruple your loss from operations AND net loss from Q2 2021 to Q2 2022 will do. Literally quadrupled lol. I also have to admire the positive outlook and false confidence (although completely delusional) that CEO Barry McCarthy exhibits. He is quoted as saying in his 4Q 2022 Shareholder Letter as saying “…what I see is significant progress driving our comeback and Peloton’s long-term resilience.” You have to just respect the resilience from this man.

It’s also unreal to imagine that there is some mf in this world who got his order filled at $171.09. I truly wonder how he’s doing…