Peloton just delivered revenue growth for the first time in nine quarters. However, it's unlikely to last, with a significant drop-off in paid subscribers expected during fiscal 2025.
Peloton NASDAQ: PTON wowed the market with its FQ4 results, sending its shares up nearly 50% in two days. This indicates a dynamic shift that could increase its price over the coming quarters and years.
In its fiscal 2024 Q4, Peloton's revenue grew for the first time in more than two years. Management is projecting solid EBITDA and free cash flow generation for its fiscal 2025 as it reduces its cost structure.
Billionaire fund managers Bill Ackman and David Einhorn have a long record of delivering market-beating returns. Ackman scooped up shares of Nike in Q2, as the swoosh shifts gears to better position itself in a $358 billion athletic wear market.
Peloton returned to slight revenue growth and improved its bottom line significantly. Fiscal 2025 guidance calls for a decline in revenue, but a jump in adjusted EBITDA.
The tail end of Q2 earnings were good to several companies on the CE 100 this week. The Index ended the week of August 23 up 2.6%, led by the “Live” pillar up 3.7% and “Bank” at 2.7%.
Peloton reduced its losses and generated positive free cash flow in the fourth quarter. Cost-cutting helped but so did inventory reductions that can't be sustained indefinitely.
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