Here's Why Peloton's New CEO Is Saying 'No' to Growth
Peloton Interactive (NASDAQ: PTON) is expected to report results for the fourth quarter of its fiscal 2022 early next month. And management will likely communicate its expectations for the business in fiscal 2023 at that time. Considering that shares of Peloton are down by 95% from their all-time high, I'm sure investors will be watching this event with utmost interest.
However, investors need not wonder what new CEO Barry McCarthy's focus will be in the coming year for the connected-fitness company. On the fiscal Q3 2022 earnings call, McCarthy said five words that unequivocally set the tone for fiscal 2023: "Positive cash flow trumps growth."
Peloton sells home exercise equipment and monetizes its hardware with a subscription service offering exercise classes. Investors were initially attracted to Peloton because it was a high-growth stock. Consider its historical growth rates.
Source Fool.com
