Why Wedbush Thinks Peloton Shares Will Hit $37

The transcript discusses the valuation of a company, focusing on its transition from hardware sales to a subscription-based model. It highlights the potential for market growth in the fitness industry, driven by a shift to at-home experiences. The discussion also covers the challenges of valuing a company that straddles hardware and software sectors, and the strategic decision to prioritize growth over immediate profitability. The goal is to build a sustainable subscription business, even if it means sacrificing short-term margins.

What is the primary focus of Peloton's long-term business strategy?

• Expanding equipment sales

• Entering new international markets

• Building a sustainable subscription business

• Developing new fitness equipment

How does Peloton's management prefer the company to be valued?

• As a software tech company

• Based on its equipment sales

• Based on its market share

• As a hardware fitness company

What valuation method is used to assess Peloton's business?

• Price to earnings ratio

• Sum of parts

• Market capitalization

• Discounted cash flow

What is the CEO's stance on Peloton's profitability?

• Prioritize growth over profits

• Focus on immediate profits

• Increase equipment sales

• Reduce subscription prices

What is the end goal of Peloton's management according to the transcript?

• To expand into new fitness categories

• To establish a profitable subscription business

• To increase market share in gyms

• To become a leading equipment manufacturer