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Why Peloton Interactive Is Jumping Today

By Rich Duprey – Oct 7, 2021 at 11:31AM

Key Points

  • Peloton is confronting an increasingly competitive market for connected fitness equipment.
  • Although rival iFIT is delaying its IPO, the owner of NordicTrack is still a threat to its market.

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The fitness equipment maker has one less public rival to worry about for the moment.

What happened

Shares of Peloton Interactive (PTON 13.00%) were running 5.8% higher in morning trading Thursday after iFIT, the owner of rival fitness equipment maker NordicTrack, said it was delaying its initial public offering due to "adverse market conditions."

So what

iFIT Health & Fitness had planned to debut on the Nasdaq Stock Market under the ticker symbol IFIT at price ranging between $18 and $21 per share, but said the uncertainty in the markets would have it evaluate whether to go public at some future time. 

Person running on a treadmill.

Image source: Getty Images.

The fitness equipment manufacturer sells treadmills and stationary bicycles like Peloton, having also entered the connected fitness market, but it also sells a broad range of other devices including elliptical trainers, fitness apparel, and footwear. iFIT had $1.75 billion in revenue in fiscal 2021, up 105% from the previous year. In comparison, Peloton had $3.2 billion in revenue.

Now what

The connected fitness space is increasingly crowded and just because iFIT isn't a publicly traded company doesn't mean Peloton can ignore the threat. iFIT bills itself as having the leading market share in the U.S. by total number of large exercise equipment units.

Also, its breadth of products means the two-note luxury brand Peloton Interactive really can't relax because of an IPO delay.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Peloton Interactive. The Motley Fool has a disclosure policy.

Stocks Mentioned

Peloton Interactive Stock Quote
Peloton Interactive
$13.30 (13.00%) $1.53

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