Peloton stock ticks up after the fitness company files to sell $1 billion worth of shares
Yahoo Finance’s Julie Hyman and Brian Sozzi discuss Peloton’s plans to sell an additional $1 billion worth of shares.
Video transcript
BRIAN SOZZI: Let's take a look at Peloton. And the stock is getting slammed here in the premarket, the last check I had. This comes-- it's now up.
JULIE HYMAN: No, it's turned around now. Look at that.
BRIAN SOZZI: It turned around. That is a reversal. The stock was getting slammed after the company came out with plans to sell an additional $1 billion worth of shares. The move is a little bit strange here. The company exited the third quarter with $612 million in total cash. So their balance sheet was fine. The message here-- and again, I wouldn't be surprised if the stock does reverse again here-- the message may be here that Peloton sees its growth slowing even more over the next 12 to 18 months, hence, why not raise cash now.