Stock down 66% over the last 12 months

  • Peloton Interactive shares dive 20% on revenue outlook cut and cash flow goal miss
  • Stock down about 66% over the last 12 months
  • Full-year revenue outlook lowered to $2.68 billion to $2.75 billion
  • Goal to generate positive cash flow for the full-year will be missed
  • Narrowed loss to $194.9 million for the fiscal second quarter
  • Revenue edged down to $743.6 million
  • Peloton ended the period with 3 million paid connected fitness subscribers

Peloton Interactive shares plunged 20% to $4.45 after the company cut its revenue outlook and warned of missing its cash flow goal. The stock, which has already dropped about 66% in the past year, is nearing its record closing low. Peloton revised its full-year revenue outlook to $2.68 billion to $2.75 billion, down from the previous guidance of up to $2.80 billion. Additionally, the company stated that it would not achieve its goal of generating positive cash flow for the full year. Despite narrowing its loss to $194.9 million for the fiscal second quarter, Peloton’s revenue declined to $743.6 million. This decrease in revenue is attributed to lower sales of bikes and other fitness products. However, Peloton ended the period with 3 million paid connected fitness subscribers, slightly exceeding management’s expectations.

Public Companies: Peloton Interactive (PTON)
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Factuality Level: 8
Justification: The article provides specific information about Peloton’s shares, revenue outlook, cash flow goal, loss, and revenue. It also includes data on analysts’ estimates and management’s expectations. However, it lacks additional context or analysis to fully understand the reasons behind the decline in shares and lower sales of bikes and fitness products.

Noise Level: 3
Justification: The article provides relevant information about Peloton’s financial performance, including a cut to its revenue outlook and missing a goal for cash flow. It also includes details about the company’s loss and revenue for the fiscal second quarter. The article stays on topic and supports its claims with data and estimates from analysts. However, it lacks in-depth analysis or insights into the long-term trends or consequences of Peloton’s performance.

Financial Relevance: Yes
Financial Markets Impacted: Peloton Interactive

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the financial performance of Peloton Interactive, a connected fitness equipment maker. It discusses the company’s lowered revenue outlook and its failure to meet a cash flow goal. There is no mention of an extreme event or its impact.

Reported publicly: www.marketwatch.com