Peloton: The Next Hot IPO Of 2019?

Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains dives into connected stationary bike firm Peloton Interactive Inc. after it filed confidentially for an initial public offering. The announcement comes on the heels of Beyond Meat’s (NASDAQ:BYND) early success and during a busy time for much-hyped giants like Uber (NYSE:UBER) .

We recently dove into Beyond Meat on the podcast, which saw its stock price skyrocket once against Friday after the company’s first quarterly earnings report as a public company impressed Wall Street. Not to be outdone, e-commerce retailer Revolve Group RVLV stock soared on its first day on the public markets on June 7. Meanwhile, Pinterest (NYSE:PINS) , Uber, and Lyft (NASDAQ:LYFT) have been up and down early on.

In terms of Peloton, the firm sells connected stationary bikes for as much as $2,694. More recently, the New York-based company rolled out treadmills as it looks to expand its business in the lead up to a possible IPO. On top of the physical bikes and treadmills, Peloton’s monthly memberships that offer access to video-based workout classes seem to be the real selling point and differentiator.

Peloton was last valued at $4.15 billion and competes with fitness firms such as SoulCycle and Flywheel Sports. The firm is certainly worth keeping an eye on ahead of a possible IPO as it combines two popular and successful business models.

The firm sells branded high-end physical products that have become popular and stand out in crowded markets much like Lululemon (NASDAQ:LULU) , Canada Goose (NYSE:GOOS) , and Yeti (NYSE:YETI) . At the same time, Peloton’s monthly subscription business has been called the Netflix (NASDAQ:NFLX) for fitness and will likely help drive the company forward in a world where stationary bikes and treadmills can be purchased on Amazon (NASDAQ:AMZN) and Dicks Sporting Goods (NYSE:DKS) for far less.

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