$PTON (Peloton Interactive, Inc.)

By admin | 09/22/2020

Early pre-market, several articles began appearing in various news outlets announcing that Amazon.com Inc. ($AMZN) had launched a connected exercise bike with private fitness equipment maker Echelon.  Hammerstone’s team noticed this ‘soft’ breaking news story (there was no press release by either company) and promptly alerted our users at 6:21 AM.  Furthermore, Hammerstone included the Peloton stock symbol, $PTON to the post to alert subscribers know that we expected $PTON’s stock to be affected by the news.  Hammerstone was correct, news of ‘Prime Bike’s’ entry into the fitness equipment sector immediately led to the sale of Peloton shares in the pre-market, moving from the $93.80 level at the time of the post, steadily trading lower throughout the pre-market, eventually make a morning low of $88.44 shortly before 10 AM.

We have also included the Hammerstone Feed’s follow-up posts after breaking the Amazon/Echelon/Peloton story: reporting on a $50 price target increase on $PTON by a Wall Street brokerage house; the mention of another fitness equipment maker, Nautilus ($NLS – which also fell sharply after the market opened) and finally, relaying comments from another brokerage house which defended the Peloton brand.

HsMkt (6:21:17 am): $AMZN $PTON – Amazon launches exercise bike with Echelon: Meet the Prime Bike
https://www.nbcnews.com/shopping/fitness/amazon-prime-echelon-exercise-stationary-bike-n1240627

HsMkt (6:22:20 am): $PTON goes red -1% after $AMZN exercise bike headline

HsMkt (6:41:48 am): $PTON reiterate Buy w/ $125 price target, sees path to $175 @ XYZ Capital

HsMkt (9:24:36 am): $NLS continues to look soft, following $PTON lower after earlier $AMZN exercise bike headlines
HsMkt (11:01:43 am): $PTON—“Echelon bike unlikely to hurt Peloton’s growth; echelon bike has been at WMT since march, no impact”: A Wall Street firm’s analyst says.