Peloton wipes out more than $900 million of investor wealth in its 1st day of public trading (PTON)

  • Peloton erased more than $900 million in investor capital Thursday after its initial public offering on the Nasdaq.
  • The company's stock opened at $27, which was 6.9% losing than its offer price of $29.
  • That marked the third-worst trading debut for a mega-IPO since the financial crisis a decade ago.
  • Peloton wound up closing 11% lower on the day, at $25.76.
  • Visit the Business Insider homepage for more stories.

Peloton wiped out more than $900 million in investor wealth Thursday after its initial public offering on the Nasdaq exchange.

The connected-fitness company sold 40 million shares for $29 each, raising nearly $1.2 billion in new funding through the IPO. The shares closed down about 11% at the end of the trading day, slumping to $25.76 per share.

The stock started trading at $27, which was 6.9% below its offer price. That marked the third-worst trading debut for a mega-IPO since the financial crisis a decade ago, trailing only SmileDirectClub and ADT.

Peloton joins a slew of unprofitable unicorns now trading on public markets. Uber and Lyft, two of the largest companies to go public this year, have both fallen below their IPO prices as they struggle to turn a profit.

The company sells $2,000 stationary bikes and live-streamed exercise class subscriptions, and has more than 500,000 customers. Peloton brought in $915 million in sales year-t0-date, with losses hitting $245.7 million in the same time frame.

Now read more markets coverage from Markets Insider and Business Insider:

Tesla spikes after Elon Musk tells employees the automaker has 'a shot' at delivering a record 100,000 vehicles this quarter

The $4 trillion ETF market scores a huge win, giving it the green light to grow faster than ever

We just learned about the latest WeWork departures. 2 longtime members of Adam Neumann's inner circle are out. More key exits are likely coming.

Leave a Reply

Your email address will not be published. Required fields are marked *