Peloton's Cry for Help
Plus, Block's strong April.
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Peloton's Cry for Help
Exercise equipment company Peloton (Nasdaq: PTON) is seeking a minority investment in order to shore up its struggling business, according to a report from The Wall Street Journal on Thursday afternoon.
Details: The report said that Peloton is exploring the sale of a sizable minority stake of around 15% to 20%. The company, which has not commented on the report, is targeting industry players and private equity firms. Talks are allegedly in the early stages.
Numbers: Shares of Peloton dropped 2.47% in after-hours trading on Thursday. The stock is also down 79% in the past 12 months.
Background: Peloton was one of the brightest pandemic darlings that rose to prominence during the lockdowns of 2020. Since then, sales have slowed down and the stock has plummeted. Peloton stopped production for certain products and the company offered a secondary stock sale to raise money.
Final Thoughts: Peloton reports earnings on May 10.
Notable Earnings Today: DraftKings (Nasdaq: DKNG), Goodyear Tire & Rubber (Nasdaq: GT), Under Armour (NYSE: UAA), Enbridge (NYSE: ENB), Cigna (NYSE: CI), Cinemark Holdings (NYSE: CNK), Fluor (NYSE: FLR), American Axle & Manufacturing Holdings (NYSE: AXL), Adidas (OTCMKTS: ADDYY), Arbor Realty Trust (NYSE: ABR), E.W. Scripps (Nasdaq: SSP), Immunogen (Nasdaq: IMGN), Liberty Formula One (Nasdaq: FWONK), NRG Energy (NYSE: NRG), Ruth's Hospitality Group (Nasdaq: RUTH), Spectrum Brands Holdings (NYSE: SPB), Vistra (NYSE: VST), Westport Fuel Systems (Nasdaq: WPRT).
Notable IPOs Today: Bausch & Lomb Corp (NYSE: BLCO), PepGen Inc. (Nasdaq: PEPG), Actelis Networks (Nasdaq: ASNS), SOS Hydration Inc. (Nasdaq: SOSH), SaverOne 2014 Ltd. (Nasdaq: SVRE), Wytec International Inc (Nasdaq: WYTC).
Notable Equity Crowdfunding Campaigns Ending Today: Granite Coast Brewing (MainVest), Red’s House (MainVest).
Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Nonfarm Payrolls (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET).
Block Saved by Strong April
Shares of Block (NYSE: SQ) jumped 8.44% in after-hours trading on Thursday after the financial technology company posted mixed earnings.
Financials: Block reported earnings of 18 cents per share and revenue of $3.96 billion; both were below estimates.
The Bad: Total revenue plummeted 22% year-over-year. The reason? Because Bitcoin revenue dropped 51% year-over-year down to $1.73 billion in the quarter. Block attributed this decline due to the stable price of Bitcoin in the quarter, which hurt customer demand and trading activity.
The Good: What saved Block? The company said that its gross payment volume (GPV) increased 29% year-over-year in April.
Background: It’s been a rough few months for fintech companies, as many of them have experienced problems adapting to a post-pandemic economy.
Final Thoughts: Shares of Block are down 59% in the past 6 months. Is it time to buy the dip?
Alternatives to the Cryptocurrency Fear and Greed Index
While the fear and greed index is a popular way to track the state of cryptocurrency, there are some alternative data options for investors.
Choices: Crypto Analyst, Dune Analytics, and Coinanalytics are some of the alternative data points in crypto, according to Product Hunt.
Final Thoughts: By keeping track of multiple data points, crypto traders will gain more insights into the market.
Trends to the Watch
Virginia is for Lovers and Planes: Boeing moving headquarters to Virginia (The Seattle Times)
Soulja Toy: Bob Iger, eBay, sports agent Rich Paul, Chernin Group team up to buy 25% stake in toy maker Funko (CNBC)
House of Cards: Zillow stock falls 9% after disappointing forecast in ‘uncertain’ real-estate environment (MarketWatch)
Empire State Out of Your Mind: The crypto industry mobilizes in New York over mining moratorium (The Block)
Rock on: Live Nation Revenue Soars As Concert Ticket Sales Recover (The Hollywood Reporter)
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