Skip to main content
No. of Recommendations: 4
Over the next two years I think you're discounting:

1. New products: They have a treadmill that is coming at a lower price point next year. Plus rowing machines and other nice products are on the drawing boards.

2. Upgrade cycle: My wife is already looking at the new model and wants to upgrade. She views it as a car payment and will just extend out her contract for the new system and keep paying the monthly fee.

3. Low penetration rate: This one is probably the best argument for growth in the near term (1 to 2 years). They still have a huge market opportunity in both the US and internationally. Germany is the only non-English market they currently support. They can expand this initiative to Switzerland, and Austria easily where it is cold and fitness is popular.

4. Pandemic is accelerating: There is no sign is the crisis slowing. Infection rates are at an all-time high around the world. Exercise at a gym or fitness club is not an option for most for at least a year. Many gyms are still going to fail (sad). This will reduce the options available in the market as a whole.


I would add apparel as an area of possible expansion:


https://www.wsj.com/articles/how-peloton-could-beat-nike-and...


PTON's building a brand with increasing market opportunities.

Dave
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.