In the Nov. 4 edition of the Rip, we covered Peloton‘s latest quarterly earnings report. It marked a second straight quarter of disappointment for investors.
Peloton’s earnings were a symptom of supply chain problems, recalls, and the inability to capitalize. However, it turns out that Peloton’s paltry earnings foreshadowed something worse — the company announced a hiring freeze across all departments on Nov. 5. The same day, $PTON stock fell 35%.
Peloton employees over 6,700 people in the U.S as of Jun. 30. That was nearly double what it was in 2020, which speaks to the insane growth of Peloton. That growth might have been too much, too fast, though.
What will come next is untold, but as Americans look to return to the gym, Peloton has some soul searching to do.