Exercise Bike, Exercise Bike Startup, Apple, $Aapl, $Pton, Peloton, Peloton Stock, Apple Stock, Apple Virtual Fitness, Digital Fitness, Virtual Fitness, Peloton Virtual Fitness, Cowen, Wedbush, Wall Street, İnvesting, Stay At Home Stocks, Coronavirus Pandemic, Coronavirus, Coronavirus Gyms, S&P 500, Dow Jones, Apple Market Cap, Peloton Market Cap, Apple $2 Trillion, Apple Fitness Subscription, Apple Subscription, Peloton Subscription, Competition From Apple, Wall Street Analysts, Nike, İphone, İpad, Apple Tv, Apple Fitness App, Peloton Main Competitors, Nordictrack, Soulcycle, İbike, Market Leader İn Virtual Fitness, Gyms Closed, $Pton Market Cap, Peloton Valuation, Digital Fitness Classes, Peloton Classes, Peloton Bike, Peloton Business, Apple Announcement

Exercise Bike, Exercise Bike Startup

Could Competition From Apple Derail Peloton? Not So Fast, Analysts Say

Peloton’s surging demand is likely to continue—even if Apple gets in the game.

8/14/2020 2:14:00 PM

Could competition from Apple derail Peloton ? Not so fast, analysts say by skleb1234

Peloton ’s surging demand is likely to continue—even if Apple gets in the game.

TOPLINEFollowing a report of possible competition from Apple, Peloton’s stock plunged—but then quickly recovered—on Thursday, and Wall Street analysts remain confident that the exercise-bike company can maintain its lead in the virtual fitness space.John Foley, Peloton's co-founder and CEO.

Editorial: Amy Coney Barrett is qualified for the Supreme Court — but should not be confirmed AMLO’s war against the intelligentsia Kentucky lawmaker, sponsor of 'Breonna's Law,' back on protest line after arrest

Michael Nagle/Bloomberg Finance LPKEY FACTSIn a bid to compete with the likes of Peloton and Nike, Apple plans to offer a new subscription service for digital fitness classes via an app for the iPhone, iPad and Apple TV, BloombergreportedThursday.While the news spurred a brief Peloton sell-off with shares dropping nearly 5% in early trading on Thursday, the stock recovered after the market open and finished the day up 2.1%—even higher than Apple’s gain of 1.8%. 

Many Wall Street analysts were unfazed by Apple’s announcement:  “Investors are still confident in Peloton, as the stock’s recovery today shows,” says James Hardiman, managing director of equity research at Wedbush.Peloton’s “marriage of hardware and software” has been revolutionary, says Hardiman, adding that “unless Apple takes this a step further, I wouldn’t think that it would significantly slow the pace of growth at Peloton.”

Cowen analysts similarly wrote in a note on Thursday that Peloton has a “unique position as a leader” in virtual fitness, “given its vertically integrated platform and highly passionate, growing user base across Bike, Tread, and expected additional hardware offerings.”

What’s more, consumers are likely to remain wary about returning to gyms for quite some time, Cowen analysts point out, meaning that Peloton’s popularity and subscription base amid the pandemic will continue to surge.Crucial quote“If Apple had announced they were coming out with a new ‘iBike,’ for example, Peloton’s stock would be down 20% today,” says Hardiman. While competition from Apple is certainly a “tangible threat” and something that Peloton might need to be wary of in the future, it doesn’t yet seem like Apple is willing to spend the money to compete and become a market leader in virtual fitness, he adds.

Key backgroundPeloton has thrived during the pandemic. With gyms closed and many people stuck exercising at home, the company has become a fast favorite among those on Wall Street who bet on ‘stay-at-home’ stocks. Peloton shares are up over 116% so far this year, rising nearly 40% in the last three months alone. Wall Street analysts are quite bullish on the stock: 88.5% who cover Peloton currently assign it a “buy” rating, according to Bloomberg data. 

What to watch forWhen looking at Peloton’s current competitors—such as NordicTrack and SoulCycle, “I always felt the existential threat rather came from the Big Tech companies who can afford to spend Peloton’s entire market capitalization,” says Hardiman. Apple, with its gigantic $2 trillion market capitalization, easily dwarfs Peloton’s $18.8 billion valuation. “To the extent that Apple has interest in going deeper into the fitness space, the next question is do they build or buy?” Hardiman says. “Why would the Big Techs bother going down the same path that took Peloton five years to get here, especially when they could just buy Peloton outright?” he speculates.

Johnson and Johnson vaccine produced strong immune response, early results say 'I have no faith in the legal system.' Breonna Taylor's mother attends emotional protest Voter registration hits record as Texans can now register to vote online for first time Read more: Forbes »

Fauci says Sen. Rand Paul has repeatedly misconstrued facts about the pandemic

Dr. Anthony Fauci and other health experts are testifying before a Senate committee on Trump's coronavirus response. Follow here for the latest.

skleb1234 100/100

Apple Reportedly Launching Subscription Bundles With Apple Music, Apple TV+ Apple Inc. is planning to launch bundled subscription offerings alongside the next iPhone line as early as October, Bloomberg reports, in a move to encourage customers to subscribe to multiple Apple services. ok cool

Apple Pulls Fortnite from App Store, and Epic Games Sues Apple in Response Apple and Epic Games hate each other. Apple removed Fortnite from the App Store today, and in turn Epic filed suit. So what's the beef?

Apple Planning ‘Apple One’ Subscription Bundle Featuring Music, TV, Tim Cook’s Hearty StewCUPERTINO, CA—In an effort to build greater customer loyalty, tech giant Apple announced Thursday the rollout of a new subscription bundle called Apple One, which will combine its popular music and TV services with a hearty stew developed by CEO Tim Cook, all at one discounted monthly rate. “ Apple One will make it easier than ever to access the up-to-the-minute news, unrivaled entertainment, and aromatic meat-based and vegetarian stews that our users have come to expect,” said company spokesperson Lynne Duncan, adding that the basic bundle would provide up to four family members at a time with access to Apple Music, Apple TV+, and Tim Cook’s signature blend of seasonal vegetables and rich, warm broth, to be delivered nightly to one’s door. “ Apple is offering more great content than ever before, and we can’t wait for our valued customers to see and smell what we’ve got in store for Apple One, from bold new original programming to Tim Cook’s delicately spiced bone-in ham stock. Members will also have the option of customizing their subscription with premium add-ons such as Apple Arcade, additional iCloud storage, or a fresh, crusty San Francisco sourdough loaf hand-carved into a soup bowl by our CEO himself.” Duncan added that while the initial rollout would offer hot soups no matter the time of year, Cook and a team of engineers were looking to expand into gazpachos by 2024.\n Is this real?!?!?!? I've always wanted a stew based subscription fivehundy

Apple, Google Remove 'Fortnite' From App Stores'Fortnite' developer Epic Games responded to the removal by filing a lawsuit against Apple alleging 'unfair and anti-competitive actions.' Jhonny21914366 freshschinken THIS IS GETTING TOO GOOD what's wrong with fortnite?

Fortnite Is Going to War With AppleFortnite is going after Apple — and loudly. The video game’s parent company Epic Games just filed a lawsuit against the tech giant for kicking it off the App Store So dumb. Epic broke the rules. Apple’s fees are whatever. Fortnite’s argument in a nutshell: “Yes we signed a contract.” “Yes we’ve benefitted from this arrangement.” “But we don’t want to pay anymore because ‘Look how rich Apple is.’”

Fortnite's maker is suing Apple after the game was removed from its App StoreThe maker of Fortnite is suing Apple after the company blocked the game from its app store. Apple said Epic Games was violating its guidelines by announcing a way for players to buy in-game currency without using Apple 's proprietary payment systems. SayHisName They're starting to eat each other. CannonHinnant