Yahoo Finance’s Brian Sozzi, Myles Udland, and Julie Hyman discuss the market action for Peloton.
Video Transcript
JULIE HYMAN: Checking on shares of Peloton. They are down 6% today. Of course, they fell yesterday as well as we saw that rotation out of those stay at home and work from home stocks. But Brian Sozzi, there is a new partnership that Peloton has embarked upon. I’m a little surprised the stock is not higher, actually, today. We’re talking Beyoncé.
BRIAN SOZZI: Yeah, big news out of Peloton this morning, Julie. Linking up with Beyoncé for special curated content, specifically around historically Black-owned colleges, so that is certainly very great news to see. But if there’s one thing I’ve learned from Peloton, just getting to know them and talking with the executive team, they’re not going to just dump new hardware on the market and fill our homes with crap. That’s just not what they’re thinking. They’re going to cultivate their membership. They want to get their name out there more. They want to get people on the platform and trying it. Certainly, who else better to team up with than Beyoncé.
MYLES UDLAND: And you know, Sozzi, it’s interesting, because if you talk to people who ride Pelotons like, well, I know you probably have, your favorite instructors, and there’s one I know, because I think Ally Love was also like an announcer at Nets games too. And I was at a Nets game a couple years ago, and my friend goes, oh, she’s a Peloton instructor. But that crossover is, you know, that’s one level of stardom. Beyoncé’s like an entirely, like she’s the own Beyoncé thing. And it’s interesting to see Peloton go from, hey, we have our micro influencer instructors, and some people like them, and now we’re just going to go straight to Beyoncé. We’re cutting out anything in between medium to small size stars and the mega of most megastars.
BRIAN SOZZI: And Myles, this is really underscores the fact that Peloton exited its most recent quarter with $2 billion in cash. They could do things that a Tonal, that a Hydro, they can’t do. They’re unlikely to have the money to go team up with Beyoncé. So for, you’re seeing Peloton here put its cash to work and potentially widen its lead in the marketplace.
JULIE HYMAN: I mean, I do wonder if this is something that would cause people to sign up for Peloton who haven’t already, right? I mean, if it’s a recruiting tool, it’s hard to tell what kind of effect that’s going to have. That said, Sozz, if you’re in a class, and you look over at the board, and Beyoncé is on the board, I would imagine that would be a bit of a thrill.
BRIAN SOZZI: Oh, I’m riding faster. If I see B on there, I’m all over it. I’m going to start paddling faster. I might break my damn machine.
[LAUGHTER]JULIE HYMAN: All right, challenge accepted. We’ll see there, Sozzi, thank you.
