Peloton's $1 Billion Share Sale Reverses Stock Selloff

The company has reduced its revenue forecasts and returned to the market with a secondary offering. Peloton raised $1.1 billion through a share sale, which boosted its stock price. Despite financial challenges, including a significant cash burn, Peloton's CFO previously stated no need for additional capital. However, changes in the past weeks led to the share sale. Subscriber growth has slowed, and revenue is declining, reflecting a shift away from stay-at-home trends.

What was the initial amount Peloton aimed to raise by selling shares?

• 1 billion dollars

• 1.1 billion dollars

• 900 million dollars

• 1.5 billion dollars

By what percentage did Peloton's shares fall in seven days after their projections?

• 60%

• 30%

• 45%

• 50%

How much cash did Peloton use in their fiscal first quarter?

• 500 million dollars

• 800 million dollars

• 700 million dollars

• 650 million dollars

What did Peloton's CFO initially say about the need for additional capital?

• They did not see the need for additional capital.

• They needed more capital immediately.

• They were uncertain about future capital needs.

• They planned to raise capital in the next quarter.

What trend is observed in Peloton's subscriber growth?

• Stable growth

• Rapid increase

• Slowing growth

• Decline