Peloton shares seesaw after first earnings report since IPO

Earnings

Peloton CEO John Foley, center, celebrates his company’s IPO at the Nasdaq MarketSite, Thursday, Sept. 26, 2019 in New York.

Mark Lennihan | AP

Peloton Interactive reports earnings for the first time since going public before the bell Tuesday.

The company, which sells connected fitness equipment and subscriptions to stream its workout classes, made its public debut in September. Wall Street is growing increasingly skeptical of money-losing start-ups, with names like SmileDirectClub, Uber, and Pinterest all struggling in the public market this year.

Peloton’s stock is trading around $24, below its IPO price of $29. Peloton had the second-worst debut of a so-called unicorn, or a company with an offering size larger than $1 billion, this year.

CEO John Foley co-founded Peloton in 2012. The company sells exercise bikes and treadmills for about $2,000 and $4,000, respectively. Members pay $39 a month to stream classes on the screens attached to the equipment. Peloton also sells a digital membership that for $19.49 gives people access to classes on its phone app.

Disclosure: CNBC parent Comcast-NBCUniversal is an investor in Peloton.

This story is developing. Please check back for updates.

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