- Peloton (PTON.US) stock rose more than 3.0% on Tuesday after the exercise equipment manufacturer announced it will fully transition to third-party manufacturing, expanding its partnership with Taiwan-based manufacturer Rexon Industrial.
- Peloton said this outsourcing operation is a step for the company to simplify its supply chain and focus on technology and content under the turnaround plans of new CEO Barry McCarthy.
- Company's third quarter results disappointed investors. Peloton recorded a bigger than expected loss and McCarthy warned that the overall business was 'thinly capitalized'.
- For the fourth quarter, the company expects revenues in the region of $675 million to $700 million, and plans to increase the number of Connected Fitness program subscribers to nearly 3 million. Peloton is scheduled to release its next quarterly earnings announcement on Thursday, August 25th 2022.
Peloton (PTON.US) stock trades 90% below its all-time high from January 2021. Price bounced off the all-time low at $8.80 recently, however as long as it sits below the resistance at $11.00, the main sentiment remains bearish. Source: xStation5
