Peloton’s New Partnership

With Peloton’s turnaround strategy not yet bearing the fruit it had anticipated, the company continues to lean on partnerships to grow market share. For example, in September, the company entered a 5-year strategic partnership with Lulemon to bring its content to the athleisure brand’s exercise app. It also made Lululemon Peloton’s primary athletic apparel partner. ๐Ÿ‘Ÿ

It’s still too early to tell whether or not that cooperative effort is working, but management seems to think further initiatives like it will help boost revenues. As a result, it’s partnering with TikTok to bring short-form fitness videos and other content to the social media platform.

With Peloton rebranding as a fitness company “for all” last May, the company is exploring all potential avenues to get that message out. And what better way to reach the younger Millennial and Gen Z cohort than through short-form video content? ๐Ÿ“ฑ

Its TikTok tie-up will create a new fitness hub on the social platform featuring short-form fitness videos, longer live classes, and content from Peloton’s instructions and TikTok creators. As for the name, it’s being dubbed “#TikTokFitness Powered by Peloton.”ย ย 

Ultimately, further social reach is great, but Peloton’s primary issue is its ability to adequately monetize users. In the year ahead, Wall Street will be watching to see if the company can grow revenues while boosting margins. It’ll be a tough act to pull off, but at least some investors believe the company can reach its goals. ๐Ÿ“Š

$PTON shares were up about 14% on the news. However, technical analysts remain concerned about the stock’s inability to break above broken support near $6.50 to $6.60. They suggest the stock will remain stuck in a down (or sideways) trend until it can successfully close above that level. ๐Ÿ•ต๏ธโ€โ™‚๏ธ

Investors Are Losing Trust

It’s been a rough eighteen months or so for real estate investment trusts (REITs), with higher interest rates giving investors alternative sources of yield and pressuring commercial real estate’s asset values. Unfortunately for Medical Properties Trust (MPT), that pain continuesย today, with its shares falling back to their Great-Financial-Crisis lows. ๐Ÿ˜ฌ

The medical-related real estate property operator revealed to investors that one of its tenants, Steward Health Care System, is roughly $50 million behind in rent payments. As a result, MPT will take a $225 million noncash charge to write off rent receivables and other items.ย 

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Chinese Smartphone Maker Unveils EV

Chinese smartphone giant Xiaomi is entering the highly competitive electric vehicle (EV) market, revealing its first electric car this weekend. ๐Ÿ‘€

The consumer electronics company unveiled its SU7 sedan, which it says it spent more than $1.4 billion to develop. The vehicle is set to roll out in China next year and is attempting to do something Faraday Future and other competitors have failed to do: create a software-focused vehicle that matches the technology people find in their phones to what’s happening in their cars.ย 

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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. ๐Ÿ“Š

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.ย 

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AT&T Suffers Major Outage

Those who work at AT&T today did not have a great day, but those who use their services had a pretty good excuse to chill out at work today. That’s because the telecom giant experienced a nationwide cellphone outage that impacted tens of thousands of its customers today. ๐Ÿ“ต

While the nation’s largest carrier said it restored wireless service to all impacted customers by midday, no reason has been given for the outages. With T-Mobile and Verizon’s networks unaffected, regulators quickly questioned whether AT&T experienced a hack or other cyberattack. ๐Ÿ“ก

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