Nvidia’s Coming Stock Split and Peloton’s Potential Expansio
Nvidia Corporation is an American technology company that designs graphics processing units for the gaming and professional markets, as well as system on a chip units for the mobile computing and automotive market. Nvidia is rising immensely in the past year and if you haven’t caught on to it yet, and still wish to, they will be having a 4:1 stock split next month making it more affordable. Nvidia is a Semiconductor stock that currently sits at a premium of about $746, however, many analysts say it still has upside.
2021 was a record year for the company as they reported 53% overall revenue growth, specifically in two of its main business segments (data center and gaming). In fact, just these two areas of the company generated revenue increases of 124% and 41%, respectively.
Peloton Interactive, Inc. is an American exercise equipment and media company based in New York City. The company was founded nearly 10 years ago and has immensely grown in popularity since then. Although the exercise product is very expensive, the company retains an astounding number of customers. Just this past quarter, Peloton’s 12-month retention rate was 92%. And overall, its retention rate has held steady above 90%.
Despite the home market for working out being their primary consumer base (one that has limited projected growth in the next decade) Peloton’s acquisition of Precor, a company producing primarily commercial fitness equipment may present Peloton an opportunity to enter into the commercial fitness equipment space and be placed in gyms. This could greatly drive revenue as many more Pelotons would be purchased in bulk.
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.