Peloton shares fell to a record low after CEO Barry McCarthy stepped down.
Transcript:
CONWAY GITTENS: I’m Conway Gittens reporting from the New York Stock Exchange – here’s what we’re watching on TheStreet today.
Stocks were in the green to close out today’s session. The Dow closed 300 points higher, the Nasdaq closed 1.5 percent higher, and the S&P closed nearly one percent higher. This comes as investors continue to digest corporate earnings while looking ahead to the all-important April jobs report out Friday. Analysts are anticipating another strong month of job growth, forecasting a gain of 240,000 jobs, a slowdown from the 303,000 in March. Investors will be closely watching this report to determine the health of the U.S. labor market.
In other news – Peloton is now searching for its third CEO in just over two years. The company announced that current CEO Barry McCarthy will step down. 15 percent of the company’s workforce is heading out the door as well. Peloton says the layoffs were necessary because it ““simply had no other way to bring its spending in line with its revenue.”
The company released a statement saying “This restructuring will position Peloton for sustained, positive free cash flow, while enabling the company to continue to invest in software, hardware and content innovation, improvements to its member support experience, and optimizations to marketing efforts to scale the business,”
The restructuring plan comes on the heels of disappointing third-quarter results. The fitness company missed Wall Street’s expectations on both its top and bottom lines. Peloton has suffered a dramatic fall from pandemic darling. Revenues have declined for nine straight quarters, and it hasn’t turned a net profit since December of 2020. The stock is at an all-time low.
Peloton doesn’t seem optimistic going forward, as it predicts a roughly 20 percent drop in app subscriptions – which comes out to about 150,000 users.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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