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Peloton Rises as Acquisitions Seen Boosting Growth

Published 03/23/2021, 12:55 PM
Updated 03/23/2021, 12:56 PM
© Reuters

By Christiana Sciaudone

Investing.com -- Peloton (NASDAQ:PTON) rose 3.4% on news of three recent acquisitions.

The fitness tech company bought Aiqudo, which makes an artificial intelligence voice assistant, last month. Late last year, it purchased Atlas (NYSE:ATCO) Wearables, which builds fitness trackers, and Otari, which makes interactive workout mats.

Demand for Peloton equipment and classes surged amid the pandemic, pushing shares up more than 500% from March 2020 to a high in January. They have fallen some 32% since then as vaccinations increased and hopes of a broad reopening keep us going, and maybe eventually get us back to germ-filled gyms.

The surge in demand has created a long waiting list for equipment that has piled up at ports, and given berth for competitors to take a slice of the pie. 

As a result, Peloton has been on a buying spree, snapping up intellectual property from Peerfit, a digital health company, in November, and Precor, a fitness equipment provider, in December, which makes equipment in the U.S.

Recently, Peloton Chief Executive Officer John Foley told Bloomberg that a rowing machine and a strength training device might be in the works.

 

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