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. 👟
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? 📱
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.”
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. 📊
$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. 🕵️♂️
