09/17/2020

SoFi is committed to fighting racism, standing in solidarity with all of our communities, providing space for open dialogue,
as well as taking action as informed allies. We are donating $1 million to organizations that empower people of color and their allies.

A Big Week for Peloton



Booming Demand for At-Home Fitness

Demand for at-home fitness equipment and programs has surged since the start of the COVID-19 pandemic. Investors are carefully watching Peloton (PTON), which makes stationary bikes and treadmills, and offers instructional content to go with them.

The company’s sales were up 66% during its latest quarter which ended on March 31. At the end of this period, Peloton’s subscriber base was up 94% year-over-year. Peloton’s shares have risen by over 180% in 2020 and it reached a market cap of $22.8 billion.

This week is an important one for Peloton. It is rolling out several new equipment offerings today, and will deliver a highly anticipated report on its fiscal fourth quarter tomorrow.

New Products and Pricing Strategies

Peloton is launching a number of new products today with the goal of reaching a wider customer base through new pricing strategies. Peloton CEO John Foley explained, “The idea that this is only accessible to rich people is obviously nails on a chalkboard for me as a business leader, as a human, and as an American.”

For some time, Peloton only offered two main pieces of workout equipment—a stationary bike which costs $2,245 and a treadmill which costs $4,295. As of today, it will sell a Bike+ for $2,495. It will sell its older bike for $1,895, and a new treadmill model for $2,495. The company said that more products will be coming soon, and it will continue to focus on pricing them strategically.

Fierce Competition

Peloton faces steep competition in the at-home workout sphere. Conventional gyms like Equinox Group and Planet Fitness (PLNT) have created virtual fitness classes as many of their brick-and-mortar locations remain closed. More direct competitors like NordicTrack and Echelon Fitness offer less expensive bikes, as well as rowers, ellipticals, and other equipment. Additionally, Lululemon (LULU) just paid $500 million for Mirror, a virtual workout system that costs $1,500.

Analysts expect the demand for at-home workout equipment and virtual classes will remain strong even after the pandemic subsides. Competition in the industry is likely to stay fierce. Investors will be eager to see how Peloton’s new strategies pan out, and to gain insights about the company’s most recent quarter from its earnings report tomorrow.


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS090901


All your finances.
All in one app.

App Store rating

Download on the App Store Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit SoFi.com. Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.


TLS 1.2 Encrypted
Equal Housing Lender