• Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Money Profit News
No Result
View All Result
Home Breaking News

Peloton files to sell $1 billion in stock offering, after recently saying no need for more cash

by
November 16, 2021
in Breaking News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Related Posts

Jim Chanos debuts new short bets against data centers, sending shares down

Rep. Liz Cheney calls for top Trump White House lawyer to testify on his Jan. 6 concerns

Goldman picks stocks poised to benefit from the multitrillion dollar ESG opportunity ahead

Snap announces Snapchat+ subscription plan that costs $3.99 a month

Cari Gundee rides her Peloton exercise bike at her home on April 06, 2020 in San Anselmo, California.

Ezra Shaw | Getty Images

Peloton said Tuesday it plans to sell an additional $1 billion of its Class A common shares, as the connected fitness equipment maker looks for ways to come up with cash amid slowing momentum for its products.

Affiliates of Durable Capital Partners and TCV, and accounts advised by T. Rowe Price Associate have expressed an interest in purchasing shares, Peloton said.

The company expects to grant the offering’s underwriters a 30-day option to purchase up to another $150 million of shares at the public offering price, less discounts and commissions.

Peloton didn’t detail how it would use the extra funds.

BMO Capital Markets analyst Simeon Siegel told clients that Peloton’s management team earlier this month said it didn’t see a need for an additional capital raise. But there’s no end in sight for Peloton’s cash burn, Siegel said.

Stock offerings are often pursued by public companies to take advantage of a growing share price, but Peloton’s market value has plunged this year. Its shares were up less than 1% ahead of the market’s open on Tuesday, having fallen nearly 70% year to date. Shares had closed Monday down 3.5%, after touching a fresh 52-week low of $46.70 earlier in the day.

When the company reported a wider-than-expected loss in its fiscal first quarter earlier this month, it also slashed its outlook for revenue for the year by as much as $1 billion.

The company has poured money into marketing, launching new products and bolstering its supply chain. As consumers cool on at-home fitness, however, analysts and investors worry those investments might have been ill-timed.

The company has also put a temporary freeze on hiring to try to reel in expenses.

“You have to ask if lowering guidance shortly after introducing it, and raising capital shortly after it wasn’t necessary begins to appear a trend rather than a one-off,” Siegel said in an interview.

Find the full press release from Peloton here.

Next Post

Rivian shares climb in post-IPO rally

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Breaking News

Rep. Liz Cheney calls for top Trump White House lawyer to testify on his Jan. 6 concerns

by
June 29, 2022
0

White House Counsel Pat Cipollone (R) waits for the beginning of a cabinet meeting in the East Room of the...

Read more

Rep. Liz Cheney calls for top Trump White House lawyer to testify on his Jan. 6 concerns

Jim Chanos debuts new short bets against data centers, sending shares down

Turkey ‘got what it wanted’: NATO deal with Sweden and Finland brings home wins for Erdogan

Snap announces Snapchat+ subscription plan that costs $3.99 a month

Goldman picks stocks poised to benefit from the multitrillion dollar ESG opportunity ahead

Ford’s Talk of New EV-Selling Rules Rattles Some Dealers

Load More

All rights reserved by www.moneyprofitnews.com

  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

moneyprofitnews