Peloton shares drop 11% after first day of trading

Peloton, which priced its shares at $29 in its IPO on Wednesday, has fallen to $25.76 at close yesterday in its first day of trading (4pm EDT) on the Nasdaq.

The company filed for an IPO last month, listing its offering size at $500 million despite revealing $196 million losses on sales in the year leading up to 30th June.

In the IPO, Peloton raised $1.16 billion, giving it a valuation of $8.1 billion. The company also warned in its IPO filing that it may not turn a profit or maintain profitability in the future.

Since launching in 2012 the company has continued to run at a loss, although it has seen significant revenue growth. During the 2019 fiscal year, Peloton amassed $915 million in sales and was dubbed the ‘fastest growing company in New York’ in 2017 (despite $71.1 million losses).

US-China trade war tariffs mixed with a lawsuit filed by music publishers, as well as suing rival firm Flywheel for patent infringement, are all possible factors impinging on Peloton’s losses.

You can keep an eye on Peloton’s share price here.

 

Hayley Everett

Multimedia Reporter

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