Peloton Shareholders Should Watch These 2 Important Metrics

In early March, Peloton Interactive (NASDAQ: PTON) announced a new offering, dubbed the One Peloton Club, which essentially combines the cost of a Bike or Bike+ and all-access membership into one, simple monthly subscription. New customers must live within 30 miles of a Peloton showroom, and it's currently being tested in California, Colorado, Florida, Georgia, Illinois, Maryland, Massachusetts, Minnesota, Texas, and Virginia.

While the total monthly fee will range between $60 and $100, depending on product and location, management's objective is to spur demand that has fallen off a cliff for the business. This consumer discretionary stock has shed 83% of its value over the past 12 months, so any progress with this new strategy could be well-received by Wall Street.

As the new pricing model possibly expands to other markets, shareholders should focus on two important metrics to measure its success: connected-fitness subscribers and monthly churn. Here's why.

Source Fool.com