FMP
Apr 29, 2024 1:32 PM - Davit Kirakosyan
UBS analysts slashed their price target for Peloton Interactive (NASDAQ:PTON) to $2.50 from $4.00, while maintaining their Sell rating on the stock. The adjustment reflects lowered expectations for revenue and profitability due to ongoing uncertainties around subscription growth and the company's ability to generate positive cash flow through growth initiatives. However, the analysts noted that positive cash flow could still be achieved through cost reductions, suggesting that Peloton's management might reconsider its cost structure in light of the poor conversion rates of app users to connected fitness subscribers following the May revamp of the Peloton app.
An analysis of Peloton's website traffic showed a positive trend in March, following a drop in January and a slight increase in February. This analysis considered total interactive visits, excluding those who leave the site without interaction. Despite the year-over-year comparisons showing easier conditions due to a significant drop last March, the recent promotional activities may have temporarily boosted these metrics. Despite these fluctuations, investor focus appears to be shifting towards the growth of connected fitness subscriptions in 2025, especially as the new tiered app membership and relaunched app have not driven the expected conversions to connected fitness.
Sep 11, 2023 1:38 PM - Rajnish Katharotiya
Price to Earnings is one of the key metrics use to value companies using multiples. The P/E ratio and other multiples are relative valuation metrics and they cannot be looked at in isolation. One of the problems with the P/E metric is the fact that if we are in the peak of a business cycle, earni...
Sep 11, 2023 1:49 PM - Rajnish Katharotiya
Price-to-Earnings ratio is a relative valuation tool. It is used by investors to find great companies at low prices. In this post, we will build a Python script to calculate Price Earnings Ratio for comparable companies. Photo by Skitterphoto on Pexels Price Earnings Ratio and Comparable Compa...
Oct 17, 2023 3:09 PM - Davit Kirakosyan
Shares of VMware (NYSE:VMW) witnessed a sharp drop of 12% intra-day today due to rising concerns about China's review of the company's significant sale deal to Broadcom. Consequently, Broadcom's shares also saw a dip of around 4%. Even though there aren’t any apparent problems with the proposed solu...