Peloton's Latest Partnership: What Growth Investors Need to Know

Home exercise company Peloton Interactive (NASDAQ: PTON) will sell equipment in Dick's Sporting Goods (NYSE: DKS) locations later this year, marking the company's first partnership with a brick-and-mortar retailer. This news comes about a month after Peloton similarly partnered with e-commerce giant Amazon, moving away from its direct-to-consumer (DTC) business model for the first time.

Growth investors may be excited by these announcements. Peloton is increasing its points of distribution, which could result in higher hardware sales. But as we'll see, there's a significant trade-off for those potentially higher sales.

Peloton stock is down 95% from its all-time high, but don't let the price per share fool you -- Peloton still has amazing brand power. According to Comparably, it ranks first among the top 100 global brands. And it has a stellar net promotor score (NPS) of 61. The company's NPS is admittedly down from a score of 74 last year. However, a NPS of 61 means that 77% of Peloton customers are actively promoting its brand to friends.

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Source Fool.com