Today is Tuesday, September 13, 2022.
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Peloton's Leadership Shakeup
Shares of Peloton (Nasdaq: PTON) dropped 1.36% in after-hours trading on Monday after the company announced the resignation of its executive chair.
Details: John Foley was the CEO and co-founded the company in 2013. In February, Foley was replaced by Barry McCarthy and moved into the executive chair role. Now, he is leaving the company altogether. Karen Boone will be the new chairperson of the board for Peloton.
Quote: “As I reflect on the journey Peloton has been on since we founded it, I am so proud of what we have built together. From day one, the incredible talent we've had on our team and the dedication, hard work, and creativity of every Peloton employee are what got us to where we are today.” - Peloton co-founder and former Executive Chair John Foley.
Background: Peloton rose to fame during the pandemic, but has since struggled to thrive. Sales are down. There have been layoffs. Production was halted for certain products. There were also reports that the company needed cash.
Stock Price: Peloton’s stock is down 90% in the last 12 months.
Final Thought: McCarthy is trying to turn this company around, which won’t be easy. Peloton could eventually get acquired.
Notable Earnings Today: Core & Main (NYSE: CNM), Aspen Group (Nasdaq: ASPU), InnovAge (Nasdaq: INNV), Iris Energy (Nasdaq: IREN), Vintage Wine Estates (Nasdaq: VWE), Connect Biopharma Holdings (Nasdaq: CNTB), Kaspien (Nasdaq: KSPN).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Yerbae (StartEngine), KnockHouse (SMBX).
Notable Economic Events Today: OPEC Monthly Report (7:00 a.m. ET), Core CPI / CPI (8:30 a.m. ET), Federal Budget (2:00 p.m. ET).
Oracle Blames Strong U.S. Dollar
Shares of Oracle (NYSE: ORCL) jumped 1.39% in after-hours trading on Monday after the technology company posted mixed financial earnings results.
Financials: Oracle reported earnings of $1.03 per share, which was slightly below estimates. Revenue of $11.4 billion was in-line.
Blame: The company said that the strengthening of the U.S. dollar had a significant impact on results, and earnings per share would have been 8 cents higher without the problem.
Big Growth: Despite the currency issue, revenue jumped 18% year-over-year. Infrastructure revenue is up 50%. Oracle’s acquisition of health IT company Cerner is also helping with the growth.
In the Cloud: Revenue for cloud applications is up 43% and overall cloud revenue is up 45%. Cloud now makes up 30% of Oracle’s total revenue.
Stock Price: Oracle’s stock is down 12% this year, which is better than other tech companies.
Final Thoughts: Oracle could be a good value stock in the tech world, but the company has some high debt concerns.
Equity Crowdfunding Spotlight: Transizion
Briefly describe your business. Transizion - We're an integrated knowledge platform that empowers young professionals to mentor the next generation of students.
What are the terms of the investment for your campaign? $5M post-money SAFE. See SeedInvest for more details.
What makes your startup special? We will succeed because our platform collects student data to provide personalized education at scale.
Trends to Watch
Hopefully, it is True: Fidelity Weighs Bitcoin Trading on Brokerage Platform (The Wall Street Journal)
Brew-ti-ful News: With Starbucks Overhaul Lacking Details, Investors Anxious for Meeting (Bloomberg)
Investors Are Lovin it: AppLovin abandons effort to acquire Unity after $20 billion bid was rejected (CNBC)
Still Waiting: A Bitcoin ETF Is Long Past Due, Crypto Lobbyists Say in New Report (CoinDesk)
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