It might seem a little strange to insist that Peloton (PTON), Robinhood Markets (HOOD) and Boohoo (BOO) are all facing exactly the same problem but bear with me.
Despite it being possible to wonder what a producer of non-moving bicycles, a gambling app and a tat to chavs retailer have in common, there is an important similarity here. One that we as investors have to fully grasp – in a manner that at least one of these managements hasn’t.
One thing that Peloton has against it, is a limited market size.
There are only so many people who can afford/have space / have time and inclination for such a device. If they make the prouct too good, then the hardware won’t change. There will only be software updates. Also unless one is a dedicated exercise freak, then these are often five minute wonders.
I once upset an American friend. She had bought a super duper treadmill, because she lived on the 17th floor and the streets weren’t all that safe. The suggestion “get in the lift, go down a few floors and run up the stairs” was not appreciated.
If you include any nouveau riche in your tat for chavs segment then you’re talking about a VERY old retail industry. Babylonian, even. If Boohoo’s management haven’t clocked that supply lines and outlets change in time and fashion then they really are dumb. I doubt they are. But Peloton and RobinHood?
Anyway, good luck.
Ottokring
That is actually a very good workout, and if I were boxing again I’d find a large towerblock and do exactly that!
Interesting. People thought the internet itself was a flash-in-the-pan, of course. Easy to ridicule now, but not so obvious (although still pretty obvious) at the time.
One point of data that I found fascinating is that even at the peak of lockdown-induced online shopping, in January 2021, it still accounted for less than 40% of retail sales. A big chunk, certainly, but not nearly as big as you might have expected from experience, or looking at your local high street.
There’s an annual run up the Empire State Building, next one’s in October. The record is 9:33 for the 1,576 steps. There’s a similar event at Toronto’s CN Tower: 9:59 for 1,776 steps.
Seriously impressive (if a bit bonkers) stuff.
“Toronto’s CN Tower: 9:59 for 1,776 steps.“
Heh. My first thought was that a crafty American architect had slipped that one in on the sly, but apparently he was Australian.
Anyone who bought into Peloton, as customer or investor, when you can get a perfectly good exercise bike for a tenth of the cost, deserves to be parted from even more of their money.
Home made Peloton.
Buy a cheap exercise bike from Argos.
Get phone and video a girl in a pony tail shouting “Pedal faster you lazy bastard!”
Tape phone handlebars
Play on loop.
Perhaps draw a graph on a piece of cardboard with a felt tip and sellotape next to phone.