A Pairing of Peloton and Amazon Makes a Lot of Sense
Beaten-down shares of Peloton Interactive (NASDAQ: PTON) caught a much-needed break this week, soaring on Monday following suggestions that it's a takeover target, then jumping again on Tuesday after the fitness equipment maker announced that a new CEO will lead a plan to cull $800 million in annual costs. After giving up 85% of its value in just a little over a year, as of Tuesday afternoon this stock is 53% higher than Friday's close.
Only time will tell how the cost-cutting program will fare with a new chief at the helm, and there's certainly no guarantee Peloton will actually be acquired -- that's only a vague rumor hinted at by The Wall Street Journal, citing "people familiar with the matter." But if three suggested buyers really are in fact mulling a buyout offer, I believe one of them would be a much better partner for Peloton than the other two.
On the off chance you haven't heard, various news organizations have reported that Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL) and Nike (NYSE: NKE) may all be interested in buying Peloton. Each of these prospective pairings make their own unique sense. Take Apple, for instance. The brand appeals to higher-end smartphone fans, and it's arguable that these bigger spenders are mostly the same crowd willing and able to spend more to own premium home-gym hardware.
Source Fool.com
