Peloton drops below IPO price, debuting on Wall Street

Peloton drops below IPO price, debuting on Wall Street

Peloton makes its Wall Street debut CNN

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By Sara Ashley O’Brien, CNN Business\nUpdated 2032 GMT (0432 HKT) September 26, 2019\n\nNew York (CNN Business)Yet another unprofitable company is struggling to win over investors on Wall Street.\n\nPeloton, the indoor fitness brand, ended its first day of trading down 11% from its IPO price. The lackluster debut calls to mind Uber, which also fell in its first day of trading as investors scrutinized its history of steep losses.\nLate Wednesday, Peloton priced its shares at $29, the high-end of its previously proposed pricing range. At its IPO price, Peloton was valued at about $8 billion, or roughly double its private market valuation one year ago.\nIt is trading on the Nasdaq stock exchange under the ticker \”PTON.\”\nPeloton is best known for its internet-connected indoor bikes and subscription cycling classes that can be streamed live or on-demand into homes. In addition to its indoor bikes, which cost $2,245, the company also sells a $4,295 treadmill with an HD touchscreen for viewing classes. Customers pay subscription fees of $39 per month associated with its bike and treadmill to participate in classes.\nThe company was founded in 2012 by a group of five people — John Foley, Tom Cortese, Hisao Kushi, Yony Feng, and Graham Stanton. Foley, the CEO, previously served as president of Barnes \u0026 Noble’s e-commerce division.

Peloton Falls 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 has priced its shares at $ 29, the highest of a previously proposed price range..Peloton Falls Below IPO Price, Debuting on Wall Street 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..

Peloton Falls Below IPO Price, Debuting on Wall Street

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.