PRODUCT NEWS
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| Peloton CEO John Foley says he finds company's falling share price baffling |
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| 11 Nov 2019 . BY Tom Walker |
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| Foley told CNBC the sliding share price was 'a bit of a head scratcher' / Peloton |
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Peloton co-founder and CEO John Foley has admitted that he is baffled as to why shares in the company have "gone backwards" since its IPO in September.
The company's share price has fallen 14 per cent from its initial value since the company listed on the US-based NASDAQ on 26 September.
The shares took a further hit on 5 November – the day it released its first quarterly results – trading as much as 9.5 per cent lower. Shares in the company are currently valued at around US$23.50 – considerably lower than the IPO price of US$29.
Speaking to financial news service CNBC, Foley said the slide in the share price "is a bit of a head scratcher".
"We had triple-digit topline growth and single-digit EBITDA loss – and narrowing losses – in a climate that people want profitability.
"For us, profitability is a managed outcome – we could pull back on growth and become profitable tomorrow." (To see the interview with John Foley in full, click here).
Peloton has become the latest in a long list of tech-oriented start-ups to have experienced a lack-lustre IPO in recent times. Others include peer-to-peer ridesharing firms Uber and Lyft.
According to data from Bloomberg, Peloton's IPO marks the third-worst trading debut in 10 years in the US for companies that have raised at least US$1bn.
The company is still, however, valued at US$7.2bn.
Peloton was founded in 2012 by John Foley, Tom Cortese, Hisao Kushi, Yony Feng and Graham Stanton.
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