Why Investors Are So Excited About Peloton Buying Precor
Connected fitness specialist Peloton (NASDAQ: PTON) announced yesterday after the close that it is acquiring Precor for $420 million in cash. The news sent shares to record highs in extended trading. Peloton shares had already gained over 430% so far in 2020 as the company has inadvertently benefitted from gym closures related to the COVID-19 pandemic.
The proposed purchase is quite promising on a number of levels. Here's why investors are so excited about the transaction.
Bike+ is suffering from supply constraints. Image source: Peloton.
Source Fool.com
