Peloton Pops On Lululemon Partnership

Peloton investors are nervous but excited about the potential business impact of its new five-year strategic partnership with Lululemon. 🤝

The deal will bring Peloton’s content to Lululemon’s exercise app. In exchange, Lululemon will become Peloton’s primary athletic apparel partner, with a select number of its instructors becoming ambassadors for the apparel brand.

Neither company shared the financial terms or whether the two will share revenue, but the synergies are clear. 🤫

By the end of the year, Lululemon will officially discontinue its Mirror product, which allows users to stream workout classes. It acquired the company for $500 million during the pandemic but quickly wrote down most of it after failing to gain customer traction. Instead, it created a new fitness app focused on digital content as it pivoted away from the hardware-based fitness business.

Lululemon’s app has about 13 million members, nearly doubling Peloton’s 7 million global membership count. This is its first significant content partnership, with executives saying they’re not looking to do other content-sharing deals until they see how this develops. However, Peloton will not have access to the members consuming its content. 

$PTON shares popped 15% after the bell, continuing their recent rebound from all-time lows. Whether or not this will be enough to help turn its business around remains to be seen. But for now, it’s doing the stock price some good. On the other hand, $LULU shares barely budged. 🤷

Only Some EV-Makers Delivered

Electric vehicle (EV) manufacturers came out with their fourth-quarter delivery numbers today, sending their stocks all over the place. 📊

First, let’s start with everyone’s favorite, Tesla, which delivered mixed news to investors. It managed 1.81 million EV deliveries around the globe in 2023, meeting its full-year guidance and narrowly topping the consensus estimates. That was up 38% YoY but slowed from 2022. 

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What’s With All The Accounting Issues?

Accounting is the practice of using numbers to tell the story of a company’s past, present, and future. For an investor, these numbers and stories are the foundation of all decisions, so it’s imperative that they’re done correctly. And generally, they are.

But lately, there’s been an uptick in the number of accounting mishaps making their way into the financial markets. Today we got a few more instances of this problem, so let’s take a look. 📝

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Nio & Nikola’s Never-Ending Story

No matter the day, there seems to be an endless stream of electric vehicle (EV) industry news. Let’s get into today’s headlines. 📰

First up is China’s Nio, which just received an additional $2.2 billion investment from Abu Dhabi’s CYVN Holdings, which raised its stake to 20.1%. The fund had last invested in Nio during July, with a $1 billion investment. 

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March Madness Continues At NYCB

When regular people talk about March Madness, they’re referring to college basketball. But when traders and investors talk about March Madness, they’re referring to a regional bank stock imploding.

We’re about a year out from three regional banks failing and/or being rescued, and now the sharks are circling New York Community Bancorp. The long story short, until today, is that the regional lender has too much commercial real estate exposure, weak internal controls over financial reporting, and a new CEO trying to right the ship. 🗞️

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