Peloton's founder is no longer a billionaire after the stock's violent post-earnings sell-off
Peloton's brutal stock sell-off on Friday booted CEO John Foleyfrom the list of billionaires.
- His net worth fell to about $850 million as the stock plunged as much as 35% Friday afternoon, Bloomberg reported.
The founder and CEO of Peloton saw his net worth slashed on Friday as the company's stock plunged on dismal fiscal
John Foley's net worth fell to about $850 million during Friday's session as investors dumped shares and drove a sell-off that extended as far as 35%, Bloomberg first reported. Foley would still stand to gain if he exercised those options even after the sell-off, according to Bloomberg. He's also pledged 3.5 million shares as collateral for a personal loan, according to a regulatory filing.
Shares of the exercise equipment maker took a beating after Thursday's earnings report signaled the at-home fitness trend is struggling in the face of easing COVID-19 restrictions and the reopening of gyms. The company reported a net loss of $376 million, or $1.25 per share. Analysts had expected a loss of $1.07 per share.
Peloton executives also revealed a lower outlook for full year earnings by about $1 billion, telling investors they expect full year revenue of $4.4 to $4.8 billion compared to earlier estimates of $5.4 billion.
The company's flagship exercise bike and subscription services were big hits during the pandemic when people found themselves locked out of gyms and stuck in their homes. However, the reopening trade has not been kind to the stock and the shares have lost about 60% of their value this year.
Still, JPMorgan analysts are upbeat ahead of the company's traditionally strong holiday season. Analysts at the bank maintained an "overweight" rating and a price target of $90, a jump of about 60% from where the stock was trading Friday afternoon.
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