Click here for the PDF: The Weekly Beacon – May 10 2024
We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.
Feel free to send in your pictures of lighthouses to be featured in our weekly commentary.
This weeks issue: Peloton stock, Peloton and private equity, Stay at home stocks, Magnificent 7 performance, Apple performance, Tesla stock, G7 countries, Canada’s contracting economy, Artificial growth, Bill Gross, Bond king, Bond funds and total return, Treasury yields, Bitcoin, Bitcoin ETFs, SEC, Pandemic savings, Consumer spending, Semi conductors, Trade wars, China and the U.S., NFL, Private equity, Finance and sports.
Peloton’s savior?
Has Peloton found a savior? The American exercise equipment and media company has been on a roller coaster ride since going public in 2019. The company saw its share price explode during COVID-19 before subsequently collapsing by more than 95% since January 2021. The company has gone through new leadership teams, sales rumors, soft sales, and numerous other issues. The company that could face bankruptcy seemingly got some good news this past week as it was rumored that numerous private equity firms were looking to buy the company. According to a report by CNBC on Tuesday, several private equity firms are looking to buy the company out as they work to refinance their debt and cut costs. The potential buyout would make the company private again.
News of this buyout made Peloton shares jump by more than 10% on Tuesday morning as investors finally had some optimism. Peloton shares are still down 31% year-to-date despite this bounce.
Last week, Peloton announced a broad restructuring plan that’s expected to reduce its annual run-rate expenses by more than $200 million by the end of fiscal 2025.
However, despite the report, there is no guarantee of the deal. A Peloton spokesperson declined to comment on the rumored buyout citing that they do not comment on speculation or rumours.
