Peloton’s IPO & right time to buy the stock: Jim Cramer breaks it down
Exercise equipment manufacturer Peloton debuted on the Nasdaq Composite at $27 per share. Jim Cramer recommends starting a position at least $4 below.
Peloton drops below IPO price, debuting on Wall Street
Fitness brand Peloton ended its first day of trading 11% below its IPO price. The humble debut resembles Uber, which also fell on its first day of trading.
Peloton priced its shares at $ 29, the highest of its previously proposed price range. At the IPO price, the Peloton was valued at about $ 8 billion, roughly double the estimate a year ago..
Peloton is known for its internet connected exercise bikes and subscription fitness courses that can be watched live or on demand.
In addition to the $ 2,245 exercise bikes, the company also sells a $ 4,295 treadmill with an HD touchscreen for viewing activities. Customers pay $ 39 per month for a subscription.
The company was founded in 2012 by a group of five people – John Foley, Tom Cortese, Hisao Kushi, Yoni Feng and Graham Stanton. Foley, CEO, formerly president of Barnes’ e-commerce division & Noble.
In an interview Thursday with CNN chief business correspondent Christina Romance, Foley admitted that «a little disappointed» initial placement results.