Here’s a quick recap of everything Peloton announced on Tuesday

Peloton Interactive Inc (NASDAQ: PTON) is up 20% in the stock market this morning after the connected fitness company named Barry McCarthy as its new CEO effective February 9^th.

Dan Ives reacts to the news

The announcement overshadowed a slate of bad news on Tuesday, including downbeat results for the fiscal second quarter and dovish guidance for the future. On CNBC’s “Squawk Box”, Wedbush Securities’ Dan Ives said:

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I think it clears the decks for a sale. Foley was one of the biggest impediments given the super majority on the B shares. With him gone, there’s more and more pressure for this company to sell because it sends a signal that growth challenges are even stronger than expected.

PTON had also closed up nearly 20% on Monday after reports emerged that giants like Amazon and Nike are interested in buying it. Ives expects Apple to actively participate in bidding for the exercise equipment maker as well.

Peloton to cut 2,800 jobs

According to the Wall Street Journal, cofounder and current CEO John Foley will step down to become the executive chairman of the board. McCarthy has previously served as CFO at notable names like Netflix and Spotify.

Peloton also confirmed on Tuesday that it will cut 2,800 jobs or 20% of its corporate positions, which could result in $800 million in annual savings. It also withdrew from plans of setting up a new factory in Ohio.

Activist investor Blackwells Capital, however, says the announced measures are not enough to create value for the shareholders.

Q2 results and future guidance

For Q2, Peloton reported $439.3 million of net loss ($1.39 per share) versus the year-ago figure of $63.6 million in net income (18 cents per share). Total revenue was up 6.0% YoY as connected fitness segment tanked 70% but services jumped 73%.

Peloton said it had 2.77 million connected fitness subscribers at the end of the second quarter. It expects to add 0.16 million subscribers and generate up to $1.0 billion in revenue this quarter. The New York-based company slashed its guidance for the full year as well.

It now forecasts revenue to fall between $3.7 billion to $3.8 billion in fiscal 2022 versus up to $4.8 billion it had anticipated earlier. Peloton expects 3.0 million connected fitness subscribers by the end of the current financial year – at least 0.35 million less than its previous guidance