Peloton founder is no longer billionaire after violent sell-off of stock after profits
- Peloton’s brutal sale of shares on Friday kicked CEO John Foley off the billionaire list.
- His net worth fell to around $ 850 million as the stock plunged 35% on Friday afternoon, Bloomberg reported.
- The exercise equipment maker is struggling as people return to gyms and home fitness trends fade.
Peloton’s founder and CEO on Friday saw his net worth plummet as the company’s shares slump on dismal tax profits and lower full-year guidance.
John Foley’s net worth fell to around $ 850 million during Friday’s trading session as investors dumped their shares and resulted in a sell-off that stretched as high as 35%, Bloomberg first reported . Foley would still stand to gain if he exercised these options even after the sale, according to Bloomberg. He also pledged 3.5 million shares as security for a personal loan, according to a regulatory filing.
Shares of the exercise equipment maker were beaten after Thursday’s earnings report signaled that the home fitness trend was struggling with the easing of COVID-19 restrictions and the reopening of gyms. The company reported a net loss of $ 376 million, or $ 1.25 per share. Analysts had expected a loss of $ 1.07 per share.
Peloton executives also revealed a drop in annual profit outlook of around $ 1 billion, telling investors they expected annual revenues of $ 4.4 billion to $ 4.8 billion from estimates. previous $ 5.4 billion.
The company’s flagship exercise bike and subscription services were big hits during the pandemic when people found themselves locked in gyms and stuck in their homes. However, reopening of trade has not been favorable to stocks and stocks have lost around 60% of their value this year.
Still, analysts at JPMorgan are optimistic ahead of the company’s traditionally strong holiday season. The bank’s analysts maintained an “overweight” rating and a price target of $ 90, a jump of about 60% from where the stock was trading on Friday afternoon.