“Cash doesn’t lie.” Peloton’s Predicament

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The Motley Fool

Business, Investing

4.3 • 3.1K Ratings

🗓️ 15 August 2022

⏱️ 30 minutes

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Summary

Peloton announces more layoffs and store closings. (0:21) Jim Gillies discusses: - How challenging Peloton's balance sheet is right now - Why Peloton will almost certainly have to raise money - The retail landscape when some of the biggest companies are set to report earnings - Why Costco is his favorite retail stock (followed closely by Home Depot) (18:41) Some companies are pulling back on investments, but others aren't stopping. Ricky Mulvey and Sanmeet Deo look at some businesses playing offense in a tough environment. Stocks mentioned: PTON, WMT, TGT, HD, LOW, COST, SHOP, AXON, XPOF, NFLX, TTD Host: Chris Hill Guest: Jim Gillies, Sanmeet Deo Producer: Ricky Mulvey Engineers: Dan Boyd, Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	It's a big week for retail, but before that, things just got tougher for Peloton.
0:10.2	Motley Fool Money starts now.
0:11.8	I'm Chris Hill, and I'm joined by Motley Fool's Senior Amos and Jim Gillies.
0:24.9	Happy Monday, thanks for being here.
0:26.8	Thanks for inviting, Chris.
0:28.4	Now let's start with Peloton, which is putting nearly 800 jobs, closing some amount of its
0:35.9	locations.
0:38.1	And along with these moves, Peloton is raising prices on some of its equipment, and I'll
0:44.7	just spot you up with the most illuminating comment from CEO Barry McCarthy, who said
0:51.8	in a memo to employees, we have to make our revenues stop shrinking and start growing
0:56.6	again.
0:57.6	Cash is oxygen.
0:59.6	Oxygen is life.
1:01.6	And I don't disagree with that, Jim.
1:04.2	But when you and I were chatting earlier today, I said to you, when I first saw this story,
1:11.0	the immediate thought I had was this seems like a panic move.
1:15.0	Yeah, you're going to get me in trouble, Chris.
1:18.5	Oh, it's one of those shows.
1:21.0	Good.
1:22.0	Oh, Peloton, yeah, it's a panic move, and yes, he's entirely correct of everything he
1:29.1	said.
1:30.1	It might have been nice if the founder, former management who ran this truck into the dirt
	...

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