Shares in Peloton Decline After Supply Chain Woes and GameStop Shares Jump After Down Week
On Friday, shares of Peloton Interactive closed down 5.86%.
Shares of the exercise equipment company dropped after the company reported its fourth-quarter earnings. Peloton reported revenue growth of 128% and subscription revenue growth of 152%.
While the company reported strong earnings, they also reported significant delivery delays amid increased demand for their exercise bikes.
In their earnings call, Peloton said they would focus on solving their supply chain problems, and they have delayed the release of their new treadmill by two months.
Shares of Peloton are up over 18% in the past three months.
Shares of GameStop closed up 19.20% last Friday.
Friday’s rally came after GameStop’s stock plunged 80% last week, giving up most of its massive January gains. In January, GameStop’s stock rallied over 1500% amid a historical short squeeze driven by the subreddit “WallStreetBets.”
Last month, GameStop reported a 309% increase in e-commerce sales and a total sales decline of 3.1% year over year. The decline in total sales was driven by temporary store closures and a temporary decline in foot traffic due to the pandemic.
Investors will be keeping an eye out for GameStop’s fourth-quarter earnings report in late March.
Shares of GameStop are up over 250% in the past month.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.