Tags: barron’s | george soros | peloton | stake | stock | shares

Barron's: Soros Buys Big Peloton Stake, Now Owns 2.7M Shares

Barron's: Soros Buys Big Peloton Stake, Now Owns 2.7M Shares
(AP)

By    |   Wednesday, 11 March 2020 03:54 PM

George Soros’ personal investment firm reportedly has scooped up a big number of Peloton Interactive Inc. shares as the stock price of the fitness-bicycle maker stalled.

Soros Fund Management, which Soros founded and now chairs, disclosed in a form it filed with the Securities and Exchange Commission that as of March 6 it owns 2.7 million class A Peloton shares (PTON), Barron’s said.

The firm has bought 2.4 million additional shares since the end of 2019, when it owned 281,000 shares. Soros Fund Management didn’t disclose the timing of the share purchases, but its Peloton stake topped 5% on Feb. 25, triggering the requirement for the regulatory filing.

Peloton’s class A shares carry one vote each, while the company’s class B shares, which don’t trade publicly, carry 20 votes each, Barron's said.

For its part, Peloton may be well-placed to benefit from restless workout fans if the coronavirus pandemic forces healthy people to stay homebound, Bloomberg reported.

Americans are bracing for a coronavirus outbreak that could lead to significant disruptions of daily life, including school closings, cancellations of sporting events, concerts and business meetings.

“We believe certain U.S. consumers will be less comfortable over time going to their gym and more likely to order a Peloton bike to stay home,” Laura Martin, an analyst at Needham and Co., wrote in a note to investors last month. “This may drive higher unit sales and subscription revenue in 2020 than are currently in our estimates.”

New York-based Peloton, which makes internet-connected exercise equipment, also has an app that people can buy as a monthly subscription. While its workouts have been available on phones and tablets for some time, the company recently began offering an app for the Apple Watch, as well as the ability to stream classes on Amazon.com Inc.’s Fire TV.

In its most recent earnings report, Peloton said it added 149,000 new subscribers during the quarter, bringing its total to 712,000. The company estimated it will have as many as 930,000 connected fitness subscribers this year. Connected fitness subscribers are people who own a piece of Peloton hardware, like the bike or treadmill, and pay a monthly subscription to access digital workouts. It’s a more lucrative category than people who pay for its app alone. If the Covid-19 virus, as it’s officially known, does lead to more in-home workouts, the figures could be on the high end or even above that range.

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George Soros’ personal investment firm reportedly has scooped up a big number of Peloton Interactive shares as the stock price of the fitness-bicycle maker stalled.
barron’s, george soros, peloton, stake, stock, shares
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2020-54-11
Wednesday, 11 March 2020 03:54 PM
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