Monday’s Headlines: Peloton Raises Prices
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
Wynn Resorts (WYNN) +8.6%
Shopify (SHOP) +3.6%
Datadog (DDOG) +2.3%
Baozun (BZUN) +2.2%
Smartsheet (SMAR) +2.1%
Moving Down ⬇️
Boston Beer Co. (SAM) -8.1%
Lovesac (LOVE) -6.0%
Nordstrom (JWN) -5.1%
Monster Energy (MNST) -4.7%
iRobot (IRBT) -4.5%
Just a reminder that the markets will be closed today in commemoration of Martin Luther King Jr. Day. They will reopen tomorrow at 9:30 AM Eastern Time.
1. Peloton (PTON) has announced significant price increases for both its Bike and Tread products. Starting on January 31st, customers will pay $250 extra for Peloton’s entry-level Bike and $350 extra for its Tread offering. The charges are being implemented as delivery and assembly costs which the company has said were previously included in the cost of any product. Rising inflation and ever-present supply chain issues have forced Peloton’s hand. This comes just months after the company notably cut the price of its Bike product by roughly 20% in a bid to generate more widespread customer appeal. Peloton will be hoping this doesn’t add to its current plight, as the company is down over 79% in the past year already. Read more here.
2. Ford’s (F) executive chairman, Bill Ford, has been building up his stake in the Michigan-based automotive company lately in a move that should please investors. High insider ownership is often touted as a positive sign for the health of a company, and news that Bill Ford acquired 412,500 Class B shares and almost 2 million common shares last month is a resounding show of faith. This comes following widespread CEO sell-offs on Wall Street last year, with rival automaker Tesla (TSLA) seeing its founder Elon Musk sell off 10% of his shares in the company. When asked about his newly acquired shares, Ford responded, “I just feel like we are very well positioned to deliver superior shareholder returns and I for one wanted to be a big part of that.” Read more here.
3. Netflix (NFLX) has raised monthly subscription prices in the U.S. and Canada by $1 or $2 dollars, depending on the type of subscription. The news saw the company’s stock spike by almost 3% on Friday, before closing up 1.3%. The price changes come into effect immediately for customers and signifies the first increases since October 2020 for the company. The areas affected make up the company’s largest region and accounted for $3.3 billion of Netflix’s revenue in 2021 – almost 44%. A spokesperson for the company commented that “We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options.” Investors will be hoping this change doesn’t hinder subscriber growth. Read more here.
Get this week’s full earnings calendar here.