Peloton shares fall in market debut
Another unicorn falls on its face.
Shares of Peloton - the fitness startup known for interactive stationary bikes - fell as much as seven percent Thursday in their market debut...
opening at $27.00 on the NASDAQ, $2 below their IPO price.
Peloton the latest so-called "unicorn" to fall short of the hype. Unicorns are privately-held companies valued at over one billion dollars.
Earlier this month teeth alignment firm SmileDirectClub, which priced shares above its target range, underwhelmed investors who punished the stock.
Uber and Lyft also went public this year with high expectations, but their shares have tumbled due to investor concerns over both companies' steep losses.
And just last week, WeWork owner The We Company postponed its IPO following soft demand.
For the year ended June 30, Peloton's revenue more than doubled to $915 million. However, its net loss widened to more than $195 million from roughly $48 million a year earlier.
Peloton's bikes come with an interactive screen and cost more than $2200. Users buy memberships of up to $39 a month so they can access live or recorded classes streamed to their home.
