Peloton stock pops after reporting largest class ever as coronavirus restrictions keep gyms closed

Business

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

Mark Lennihan | AP

Shares of Peloton finished the day up more than 6% Friday after the company said it held its largest class ever earlier this week, with more than 23,000 people streaming it from home.

Peloton sells exercise equipment, including cycles and treadmills, as well as subscriptions to stream live classes. 

The company’s stock is up more than 13% since Jan. 1 as the coronavirus pandemic keeps gyms around the country shuttered and consumers look for opportunities to exercise at home. Peloton’s at-home business model appears to be among the few able to thrive as much of society shuts down to curb the spread of the coronavirus.

Peloton said in a statement to CNBC that more than 23,000 tuned in for more than 10 minutes each to a live workout on Wednesday, which topped the previous record for most users in one class of 19,000. Bloomberg News first reported the record class

Wednesday’s class was the first the company has streamed live since it paused production earlier this month. The record-breaking class was streamed from the home of the company’s head instructor, Robin Arzón.

Peloton said on March 15 that it closed its retail stores to the public, but added that it would continue to produce live content from a closed set in response to the coronavirus outbreak. However, earlier this month, the company announced that it would “pause live production” after an employee tested positive for Covid-19, The Verge reported. It’s now setting instructors up to stream live from home.

Analysts told CNBC last month Peloton, which made its public debut last year, could emerge ‘much stronger’ once coronavirus restrictions are lifted.

“It’s going to emerge from this a much stronger company with greater demand,” Wedbush’s James Hardiman said at the time.

According to the company’s second quarter earnings release, Peloton reported more than two million members as of the end of its second fiscal quarter on Dec. 31, and its quarterly revenue grew 77% to $466.3 million. Representatives of Peloton declined to comment on member growth since their last disclosure. 

The company said earlier this week it will announce fiscal third-quarter earnings on May 6.

— CNBC’s Jessica Bursztynsky and Diana Olick contributed to this report.

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

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