Monday's Headlines: Is Peloton In Trouble?
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
Stitch Fix (SFIX) +4.0%
Baozun (BZUN) +3.4%
RH (RH) +3.2%
Trupanion (TRUP) +2.8%
Moving Down ⬇️
Pinterest (PINS) -9.7%
Nautilus (NLS) -5.5%
Datadog (DDOG) -5.2%
Cloudflare (NET) -4.9%
Zillow (Z) -4.8%
1. Something is rotten in the state of New York — or more specifically: Peloton’s (PTON) New York City HQ. The exercise equipment leader’s stock is falling pre-market after the U.S. Consumer Product Safety Commission (CPSC) warned people not to use Peloton Tread+ treadmills with children or pets nearby. The warning comes following the tragic death of a child in March, which was related to an accident involving one of Peloton’s treadmills. The company has publicly acknowledged the incident, but it appears that more and more reports are coming out ever since, with the CSPC citing 39 further incidents. Hold on to your seats, this could be a manic Monday for Peloton. Read the complete report here.
2. Shares of Pinterest (PINS) took a 10% haircut on Friday following analyst fears of an ad-spend decline. According to a Cleveland Research report, “Q1 looks like it ended softer than mid-quarter expectations would indicate, and some agencies/partners noting a deceleration from Q4 levels.” During Pinterest’s Q4 earnings report back in February, management indicated that it expected first-quarter revenue to grow at a rate in the low-70% range, contrary to Cleveland Research’s claim. I guess we’ll have to wait until the firm releases its Q1 financials next Tuesday, April 27. Read the full article here.
3. One streaming service to rule them all? Perhaps, as Amazon (AMZN) is set to join the adult table on the streaming market by creating the most expensive television series ever made: the ‘Lord of the Rings’ prequel. Amazon intends to spend an estimated $465 million on the first season of its latest TV venture alone. For comparison, HBO’s ‘Game of Thrones’ cost around $100 million per season. Could this be Amazon’s ‘Stranger Things’ moment that makes it stand up and barge into the over-the-top streaming game as a real threat to Netflix (NFLX) and Disney (DIS)? It just may be… Read the complete story here.
There are 2 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.