How can you buy Peleton shares?
Fitness is booming and Peleton is capitalizing on this trend! This American company sells fitness equipment and memberships that allow you to take classes online. In this article, we discuss how you can invest in Peleton by buying its stocks.
You can buy Peleton shares at an online broker. A broker is a company that makes it possible for private investors to actively trade on the stock exchange. At eToro, you can buy Peleton shares completely without commissions: this is especially attractive if you also invest with smaller amounts. Use the button below to directly open an account at eToro:Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
How can you actively invest in Peleton?
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What is the current stock price of Peleton?
Are you curious about Peleton’s current CFD share price? Use the buttons below to directly open an investment on the company:
About the company Peleton
In the Netherlands, the various gyms and online fitness classes are popping up like mushrooms, but in the United States they are going even further. Here, Peloton is a big hit. This company focuses on all aspects of fitness for gyms and for the home, from producing fitness equipment such as treadmills and fitness bikes to providing online home classes for different types of training.
The company is listed on the US stock exchange and there it seems that the activities are moving with the same intensity and drive as the participants who are customers of this umbrella brand.
Two operating modes
Its services are divided into two departments. The first department deals with the supply of fitness equipment. These devices can be delivered to both gyms and people who want to be able to do a spinning class at home.
In addition, Peloton makes sure that you, especially as a home athlete, don’t have to exercise at random without being sure that you are doing your work-out properly. Peleton also has a service where you can follow unlimited fitness classes to make sure that you do your work-out at home as good and extensive as possible. The lessons can be requested through a subscription service, so users pay a fixed amount per month and can take as many lessons as they want.
The beauty of a subscription service is that it allows the company to build up recurring revenue. This can be an extra attractive reason to buy Peleton stocks.
Popularity drives value increase
Going to the gym has become an increasingly popular trend in recent years. Especially young people between 16 and 35 are sold on working up a sweat and taking care of their bodies. As a result, subscriptions and services in the field of fitness are unstoppable and companies such as Peloton are increasing in value. The shares of the American sports company are rising all the time, so that one share is now worth almost four times as much as when the company was first listed on the stock exchange.
Do you think that this focus on health will continue in the future? In that case, it may be smart to invest in Peleton shares.
The road to profitability
What is special about this value is that the increase in the value of the stocks is at odds with the profits made by the company itself. Peleton is a loss-making company with tens of millions of dollars in the red every year. Yet, this is not noticeable when you look at the figures on the stock exchange. The reason for this may be that the largest buyers of the fitness equipment are large gyms, and since these have enough equipment after a large delivery, they can also open less often or not at all in the current circumstances. As a result, this source of income virtually disappears.
The main source of income for Peloton is the subscriptions that people buy to exercise at home. Because of the gigantic hype surrounding home sports, they managed to attract millions of users in America, but not enough to make a profit.