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Peloton (NASDAQ:PTON) Stock Down on Exit of Another Top Executive
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Peloton (NASDAQ:PTON) Stock Down on Exit of Another Top Executive

Story Highlights

Beleaguered at-home fitness company Peloton is losing yet another key executive at a time when its losses are mounting amid tough business conditions.

Connected fitness equipment maker Peloton Interactive (NASDAQ:PTON) will witness the exit of yet another key executive. As per a New York Times report, Dara Treseder, global head of marketing, communications, and membership, will be leaving the company to assume the role of chief marketing officer at Autodesk (ADSK). Treseder will work at Peloton through October 4. The company’s spokesman credited Treseder for boosting its membership by more than double to over 6.9 million during her tenure.

Peloton shares fell 3.4% in Monday’s regular trading to close at $8.22. The news of the marketing head leaving comes days after the company announced the departure of co-founders – former CEO John Foley as Executive Chair and Hisao Kushi as chief legal officer. Kevin Cornils, Peloton’s chief commercial officer, also stepped down from his position.

Foley relinquished the role of CEO of the company in February and was succeeded by Barry McCarthy, who previously served as CFO at Spotify (SPOT) and Netflix (NFLX). McCarthy is implementing various initiatives to revamp the troubled company, including layoffs. The company has started selling some of its products on Amazon (AMZN) and is also introducing new products, like the recently launched rowing machine.

Peloton experienced stellar growth rates in the early days of the pandemic when gyms were shut down. However, the company is struggling to thrive since the reopening of the economy and a slowdown in consumer spending amid high inflation. Last month, the company reported a wider-than-anticipated loss for the June quarter due to a 28% fall in revenue and higher costs.     

Is Peloton Stock a Buy, Sell, or Hold?

Wall Street is cautiously optimistic about Peloton. The stock scores a Moderate Buy consensus rating based on 12 Buys, eight Holds, and two Sells. The average Peloton price target of $15.94 implies nearly 94% upside potential from current levels. Shares have tanked 77% year-to-date.   

Final Thoughts

The departure of a top executive at a time when Peloton is already struggling to thrive amid macro challenges is a negative signal for investors. All eyes will be on the company’s performance in the upcoming quarters, which will provide clarity on the effectiveness of the turnaround efforts under the new CEO.

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