1 Question Peloton Has to Answer
On April 1, nine-year-old company Peloton Interactive (NASDAQ: PTON) completed its acquisition of 40-year-old company Precor for $420 million. Both companies deliver a connected-fitness experience to their customers. However, Peloton's focus is undoubtedly at the consumer level whereas Precor excels in commercial-fitness applications like gyms, hotels, and apartment complexes.
With the acquisition now complete, Peloton needs to answer the following question: How quickly and effectively can it integrate Precor into the business? It's a question that can only be answered with results over time. But make no mistake, the success of this acquisition is a big part of a bullish thesis moving forward for Peloton shareholders. Here's why.
Image source: Peloton Interactive.
Source Fool.com