Activist Investor Urging Peloton to Fire its CEO in Light of Poor Stock Performance

An activist investor is calling on beleaguered Peloton Interactive (NASDAQ: PTON) to terminate its CEO and sell itself to a better performing tech or fitness company, as the exercise equipment maker continues to suffer from poor demand and a swiftly deteriorating stock price.

According to the Wall Street Journal which cited people familiar with the matter, Blackwells Capital LLC, an activist investor, is urging Peloton’s board members to fire its co-founder and CEO John Foley, as the company’s growth fails to materialize amid diminishing demand. Blackwells is blaming Foley for various strategic errors such as poorly executed manufacturing strategies, which have ultimately sent the company’s stock plummeting by nearly 85% over the past year.

What started out as one of the hottest stocks across markets during the height of the pandemic, Peloton has rapidly lost its luster after a series of safety incidents put its treadmill under scrutiny, and the lifting of Covid-19 restrictions prompted consumers to return to gyms and fitness centres. Now, Peloton’s valuation is down from a peak of $50 billion nearly one year ago, to a paltry $8 billion as of current.

Blackwell is also pushing Peloton to sell itself to either a technology or fitness company such as Apple, Sony, Disney, or Nike to spare itself further losses.


Information for this briefing was found via the WSJ. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Euro Sun: Rovina Copper-Gold Project Secures Some Major Funding

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

Peloton Recalls Over 2 Million Bikes In The US, Offers Free Part Replacement

Peloton (NASDAQ: PTON) has issued a voluntary recall for 2.16 million bikes in the US...

Saturday, May 13, 2023, 03:30:00 PM

Peloton: JMP Securities Reiterates Rating Following Subscription Service Reports

Last week, the Wall Street Journal reported that Peloton Interactive (Nasdaq: PTON) was looking to...

Sunday, March 20, 2022, 11:02:00 AM

Peloton Replaces CEO With Ex-Spotify CFO, To Cut 2,800 Jobs

Following PR crises and production halts, Peloton Interactive (Nasdaq: PTON) announced today that its CEO...

Tuesday, February 8, 2022, 09:26:00 AM

Peloton Sent Crashing After Company Lowers Outlook, Slashes Bike Price

Shares of Peloton were sent sharply plummeting on Thursday, as the exercise equipment maker reported...

Friday, August 27, 2021, 09:00:57 AM

Peloton’s “Ship Is Turning” But Not From Its Product Revenues

Peloton Interactive (Nasdaq: PTON) reported its fiscal Q1 2023 financials highlighting a quarterly revenue of...

Thursday, November 3, 2022, 05:33:00 PM