Business

Shares of Peloton surge 11% after David Einhorn says stock is significantly undervalued

In this article

David Einhorn speaking at the 2024 Sohn Conference in New York City on April 3, 2024.
Adam Jeffery | CNBC

Shares of Peloton spiked more than 11% on Wednesday after Greenlight Capital’s David Einhorn said shares of the company are significantly undervalued, CNBC has learned. 

Einhorn made the pitch at the Robin Hood Investors Conference. It was not immediately clear what Einhorn believed Peloton shares should trade at.

He made the case for the company as he was riding a Peloton bike, a person familiar with his remarks said. 

Over the summer, Greenlight Capital, the hedge fund that Einhorn founded in 1996, disclosed it had a $6.8 million stake in the company as of June 30. 

Peloton’s stock tends to be volatile and is up a little more than 1% so far this year, as of Tuesday’s close. 

Einhorn’s comments come one day after the company announced it was partnering with Costco to sell its Bike+ in the retailer’s stores and online as it looks to reach younger, wealthier consumers with the discretionary income to buy pricey exercise equipment. 

The company is currently being led by two board members after CEO Barry McCarthy stepped down earlier this year. It is in the process of finding a new CEO and expects to announce its next top executive this year.

When reporting earnings in August, Peloton indicated it was ready to focus more on profitability over growth after completing a massive refinancing that pushed out its debt maturities and bought it some time to affect a turnaround. 

Peloton did not immediately respond to CNBC’s request for comment. 

Articles You May Like

Rivian lowers earnings guidance after missing Wall Street’s third-quarter expectations
28% of credit card users are still paying off last year’s holiday debt. But that’s an improvement
Fed’s Kashkari says Trump tariffs could reheat inflation if they provoke global trade ‘tit for tat’
Hedge funds performed better under Democratic presidents than Republican ones, history shows
Beyond The Ballot: 4 Ways To Exercise Control In Your Personal Finances

Leave a Reply

Your email address will not be published. Required fields are marked *