Dan Price’s Post

Peleton, the ultimate Covid and Work from home boom / bust story? What do you guys think, still a good business to own and invest in for the next 5 years? Obviously way overhyped but perhaps the reversal went too far in terms of sentiment? Views are my own and not of my employer. Not investment advice but now I a small holding investor now that sentiment has reversed so we will see. https://lnkd.in/eSCT33N2

For the past couple of days, I have consoled and supported my previous colleagues as they have “unclipped” for their last ride with Peloton. I feel a responsibility to advocate for some of the feelings that can’t be expressed due to the social customs and expectations of the saturated job market they face as they pursue their next opportunities. During the pandemic, Peloton exploded, and for anyone who was there, you remember how amazing the experience was. We grew so fast! I remember an all-hands meeting a team member described us as a “6-foot 5th grader trying to learn.” The pandemic tapered off, and manufacturing, logistics, and financial challenges soon arose. During this existential crisis, upper management became more concerned with self-preservation rather than navigating obstacles and making decisions that could mitigate loss. Barry Mcarthy once said, “Fast is as slow as we go.” I guess we weren’t fast enough. To all hiring managers: Understand that the individuals parting ways with Peloton who are applying to your posted position, they have endured change and stress to the degree that few others will experience in their entire careers. They have most likely been working a combination of 2 or more roles that went beyond the scope of their original job description. These are badass people that you should at least consider for an interview.

Any sales friends also Peloton groupies? You might like this OnBase episode with Chris Mael, Director of Sales and Ops Planning at Peloton. Here's a sneak peek at what some might call a Hot Take: "The goal is to move away from individual department metrics and KPIs that can be adversarial, and instead create a unified set of objectives that everyone is committed to achieving. This requires open dialogue, tough questions, and a willingness to address any gaps or misalignment in perceptions." https://lnkd.in/eYhmDHTd

Hard to fathom a market cap declining from $49 Billion to $1 Billion in 36 months, but that's what we are looking at here. This is a case study on brands who live on speed to market versus intellectual property. Peloton did it first and did it fast, and created an enormous valuation bubble. Everyone drank the Kool-aid. Beginning in 2020, the pandemic boom accelerated their growth, and over the last two years, the pandemic bust accelerated their demise. But there was always one huge problem - Peloton had little to no IP. There were no barriers to entry, which made them defenseless to the army of exercise bikes, rowing machines and fitness app competitors who seized their success. The key lesson - speed to market always runs out of speed. Brands who sustain better have a war chest of patents, intellectual property and proprietary protections.

Get a fresh start with a Peloton

📉 Feeling the heat after Peloton's rough Q2 earnings? Don't panic, we've got you covered! Dive into our recent blog post dissecting Peloton's 23% plummet and uncover what this means for investors: https://ow.ly/gkK850QF5gG #StockMarket #MarketInsight #StockForecasting #StockAnalysis #Peloton #Investing

What’s possible with persistence? It took 6 weeks of persistance and patience. Six weeks ago I was on my computer, at 7am trying to register for a Peloton Interactive live class in NYC. It filled up before I could finish my credit card details. I signed up for every class waitlist I could. I left my one day I could take Peloton class in NYC open, figuring I’d line up for hours to try and get in. The second my plane landed, I got the notification to register. I’ve got quite a few Peloton fanatics on this feed, honestly, a totally worth it surreal experience. Getting into this 45-minute Peloton class with Selena Samuela was a lot like what I experience being a founder…you just have to keep pushing. Sometimes it’s not something tangible you need to push, but a mindset change. In the earlier days before achieving a consistent online business, decisions were about survival, not growth. It was all about not out of running out of money. Now with a proven concept, it’s about investing in decisions and partners that pay off in the long-term decision. But I do find I have to push my mindset to adapt. What was then, is not now. Just putting this out there for those that need to hear: keep pushing. #mindset #founderlife

Instead of beating myself up over inaction, I've found it helpful to seek alternative solutions. For instance, when facing cravings on my journey to sobriety, I turned to quick Peloton rides as a way to redirect those impulses. Join me in exploring new approaches to challenges and embarking on a path of personal growth. Dive deeper into these insights at www.austinlinney.com

By: John Gapper John Foley, the co-founder of Peloton, navigates the aftermath of a staggering financial loss with surprising composure. Having once enjoyed billionaire status, Foley's fortune diminished dramatically, leading him to sell multimillion-dollar properties and adapt to a new reality. Despite his substantial losses, Foley remains optimistic, focusing on his new venture with Ernesta, a custom rug company. This article explores Foley’s mental resilience, the broader implications of financial setbacks on personal identity, and how some entrepreneurs view failure as just a stepping stone. This article is part of our 'Weekend Reading' series, which features in-depth explorations of personal challenges and triumphs. Discover more stories that offer unique insights into resilience and recovery. Read the full article here: https://lnkd.in/eEU85T6Y

In the wake of the pandemic, Peloton and Carvana emerged as standout performers in 2020, catering to Americans' desires for both stationary and mobile solutions. However, their trajectories have diverged sharply since then. While Carvana's strategic pivots have propelled its market cap to $25bn, Peloton is grappling with a diminished market cap of just over $1bn and a hefty $2bn debt burden. Carvana's success can be attributed to its adept cost-cutting measures, leading to profitability even amidst declining sales volumes. In contrast, Peloton's attempts at austerity have been hindered by manufacturing and shipping challenges, leaving it breakeven on gross profit. Despite its robust digital subscriptions, Peloton faces a daunting task of refinancing or paying off a $1bn convertible bond by 2026. It's worth noting that Peloton is rumored to be a potential acquisition target for Private Equity funds. This adds an intriguing dimension to its future trajectory, potentially offering a lifeline amid its current challenges. However, time is of the essence for Peloton to navigate its strategic path effectively, as Carvana's turnaround serves as a compelling example of swift and effective adjustments in response to changing market conditions.