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Discussion Starter #1
With their sales and overall revenue growing, Peloton has said they are moving closer towards becoming a public offering. They are currently in the process of interviewing banks and could become a public traded company the second half of 2019. For those who don't know they are currently valued at $4 billion and would be one of the first companies to become investable in the growing high end fitness category. https://finance.yahoo.com/news/peloton-interviews-banks-ipo-232000215.html
 

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Catering to a high end clientele has certainly been working for them. I don't know if any of you have ever gone into one of their stores, but you do get a very Apple boutique vibe from them. Intersecting fitness, technology and media was a brilliant foundation for their platform.
 

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Just read that they company has been valued at more than $8 billion as they've been shopping around at different banks. Goldman Sachs and JPMorgan will lead their initial IPO. No final decision about timing or size yet.
 

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I'm skeptical about how its stock will perform because I still have the belief this product line up is a bit on the trendy side and needs time to see how long it can sustain interest from the audience they're targeting.
 

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Discussion Starter #5
As far as I know they only have about 60 retail stores globally, so they are going to have to expand upon that number if they hope to capture new customers and retain existing ones. Even though they are a digital brand, many will have to see their products in person before making an investment.
 

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Many new companies do the majority of their business online, just due to the cost of brick and mortar locations. But having local support/stores for owners could give them a better piece of mind if they come across any issues.
 

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Many new companies do the majority of their business online, just due to the cost of brick and mortar locations. But having local support/stores for owners could give them a better piece of mind if they come across any issues.
Not just that but studios specifically for spinning in a gym like setting are taking off.
And I think that's the bigger benefit here, products like this need to be based around community to be successful. It also supports the growing need to do more social things in-person rather than behind a screen all the time.
 

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Its clear from their livestreams and pre recorded sessions that they are trying to bring a more engaging experience to home workouts. The leaderboards are a good way to bring friendly competition and community to the privacy of your own place.
 

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Its just a different experience you're getting.
In fact some people might want a mix of both, studio time where they can get in some yoga or an intense bootcamp session, then crank out a small session at home if its what keeps them going.
 

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Experiment and find what works best for your body and schedule. Motivation is the key issue that people face when trying to work out privately, hence the growing number of people attending studio classes.
 

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Update on the IPO with the legal situation its been caught up in:

source: https://www.clubindustry.com/news/peloton-begins-its-ipo-pursuit-amid-legal-woes
"Peloton, New York, confidentially submitted a draft registration statement for a proposed initial public offering relating to the proposed initial public offering (IPO) of its common stock, the company announced. The filing occurred as the company faces a lawsuit over its use of certain music in its classes and a review of some of its patents.
The draft registration statement for the IPO was sent to the Securities and Exchange Commission (SEC) on June 5. Now, the company will go through a review by the SEC, which will include a question and answer period.
Filing confidentially allows Peloton’s prospectus to remain private for longer, possibly up until the share sale, according to Forbes.com.
Peloton’s private valuation is $4.15 billion, according to Forbes.com.
The number of shares to be offered and the price range for the proposed offering have not yet been determined. The IPO is expected to begin after the SEC completes its review process, subject to market and other conditions.

As the company goes through this process, it also is fighting a $150 million lawsuit filed in March by 10 music publishers alleging copyright infringement on more than 1,000 songs the company uses in its streaming and on-demand classes. The company said it would remove any classes using the songs in question, but in April, Peloton filed a countersuit, saying the lawsuit exhibited antitrust behavior.


In addition, the U.S. Patent and Trademark Office plans to review three Peloton patents. Peloton had filed a suit in September 2018 against Flywheel Sports alleging that Flywheel had infringed upon Peloton’s patents. Flywheel asked a review board within the Patent and Trademark Office to review the patents, contending the patents covered old ideas.

Peloton launched in 2012, selling its first bike in 2014. Since then, it has sold more than 400,000 bikes and lured 500,000 subscribers who not only pay around $2,000 for a bike or $3,995 for a treadmill but also pay $39 per month to stream the company’s classes. Recently, the company also began offering a $19.95 per month digital membership that allows people to stream classes on devices without buying one of its bikes or treadmills. All of this purportedly would garner Peloton $700 million in sales for the fiscal year that ended in February, according to a February 2019 CNBC story.

The announcement of Peloton's IPO pursuit came just a week after SoulCycle announced that its plans for an IPO are being withdrawn due to "market conditions." SoulCycle initially announced it planned to do an IPO in 2015."
 
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