The Peloton IPO — yet another billion-dollar startup making its public debut in 2019.
Now, if you’re not familiar with Peloton, I can’t blame you. It’s probably just because you’ve never wanted to spend $4,000 on a treadmill.
But it turns out there’s a pretty big market for insanely expensive exercise equipment.
That said, it’s important that traders get familiar with Peloton ahead of the company’s market debut. After all, you don’t have to be a fan of the product to trade the stock.
So, let’s get down to it. Take a look at what you should know about this unicorn IPO.
What Is Peloton?
Peloton sells home fitness equipment with a twist.
The company’s exercise bikes and treadmills are hooked up with huge screens that let customers follow along with live workout classes. It’s basically the perfect solution for rich people who don’t want to leave home to work out.
Peloton’s equipment is a one-time sale, but customers have to pay a subscription fee to take part in the workout classes.
This is great for traders. Subscription-based models can mean steady revenue … and that can be good news for both the company and traders.