Earnings and CEO resignation in focus

The Peloton (NASDAQ: PTON) stock price declined by more than 4% in the premarket session as investors reacted to news that its CEO was stepping down. The stock is trading at $28, which is lower than its Monday’s close of $29.75.

Peloton earnings preview

Peloton has been in the headlines in the past few days as investors have reacted on the company’s slow growth. The stock jumped by over 20% on Monday as investors reacted to rumours that companies like Nike and Amazon were considering making a bid for the company.


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If a deal happens, it will be at a great discount considering that at its peak, the stock was trading at about $170. 

The company is also in the spotlight after the Wall Street Journal (WSJ) announced that John Foley will step down as the CEO and remain as the executive chair. In addition, the firm plans to overhaul its board and cut costs. The new CEO of the company will be Barry McCarthy, who previously served as the CFO at Spotify and Netflix.

The announcement caught investors off-guard considering that Spotify is expected to deliver its quarterly results later on Tuesday. Analysts expect that the company’s results will show that its revenue declined dramatically in the fourth quarter. 

Precisely, they believe that Peloton’s revenue came in at about $1.15 billion in the quarter while its losses rose. They also expect that its loss per share rose to $0.92. As you recall, the company provided a surprise warning in January about its quarterly results.

Therefore, the fact that the CEO has resigned before delivering the quarterly results is a sign that things are not good. Another notable sign is that Peloton’s insiders have been selling the stock in the past few months. 

Peloton stock price forecast

Peloton stock price

The daily chart shows that the PTON stock price has been in a strong bearish trend in the past few months. As a result, the shares remains below all moving averages. At the same time, it has formed a descending channel that is shown in red. It managed to move above this channel on Monday after the acquisition rumours.

Therefore, there is a likelihood that the Peloton share price will continue retreating after earnings. If this happens, the next key support to watch will be at $20. However, a move above the 50-day moving average at $37 will invalidate the bearish view.

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Source: https://invezz.com/news/2022/02/08/peloton-stock-price-forecast-earnings-and-ceo-resignation-in-focus/