What happened
Shares of Peloton (PTON 4.10%) have popped today, up by 8% as of 3 p.m. EDT, after the company reportedly set a new record number of people streaming a workout class. The COVID-19 crisis is driving interest in Peloton classes as consumers stay home but still want to exercise.
So what
A record 23,000 people showed up to stream a live class earlier this week, according to Bloomberg. The fitness equipment maker also said it has over 2 million members, which is about as many as it had at the end of 2019. The public health crisis has shut down gyms, recreation centers, and other physical locations where consumers typically exercise, leading them to turn to alternatives that they can use at home -- like Peloton.
Image source: Peloton.
"This is the first time that Peloton has filmed classes outside of its two studios after the temporary suspension of streaming live classes from its studios in New York and London," Peloton said in a statement. The news comes just days after the company said it was sending instructors equipment to enable remote filming and transition to live-streaming. An employee at the exercise tech company's studio in New York tested positive for coronavirus earlier this month.
Now what
The COVID-19 pandemic has created massive changes in consumer behavior that are benefiting certain companies, particularly those that cater to homebound people. Peloton has outlined certain steps it is taking to address the outbreak, including donating bikes to hospitals and healthcare professionals and launching a $1 million relief program for members.
Peloton's outlook for fiscal 2020 (which it has not updated or withdrawn, unlike many other companies) calls for $1.53 billion to $1.55 billion in revenue. The company expects to end the fiscal year with 920,000 to 930,000 connected fitness subscribers. Peloton will report fiscal third-quarter results on May 6.
