Peloton drops below IPO price, debuting on Wall Street

Peloton drops below IPO price, debuting on Wall Street

Peloton’s IPO & right time to buy the stock: Jim Cramer breaks it down

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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.

Peloton drops below IPO price, debuting on Wall Street

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.