PTON acquisition rumors is kinda sus.
PTON makes most of its revenue from selling equipment, the same equipment (bike + screen) can be purchased on sites like Ali express etc sold by other random manufacturers.
-Sure they have a subscription service which brings them revenue but it’s not enough to justify a 8b$ valuation. Growing competition (Lulu, Apple, Amazon, Nike) all of whom can create the content as well as get the devices manufactured for a fraction of the cost of acquisition.
Sure, PTON has a loyal customer base (1.2 M?) paying 8B$+ is a very high price to pay for just so few clients.
The brand name itself is linked with controversy, death of Mr.Big, on screen death on billions , lawsuit with luluemon, mismanagement and improper treatment of employees.
The timings of the announcement of the “Amazon is in talks to acquire PTON” rumor is very suspicious. Just 2 days before earnings report. Everyone knows that if they screwed this earnings report the stock would plummet hard.
Besides why wouldn’t Amazon just wait for the company to bleed? Isn’t it already bleeding like it’s suffering from hemophilia? Any company would just let PTON bleed and then take it over no?
Submitted February 06, 2022 at 03:22PM by WetwulfDTF
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