The monitor displays Peloton Interactive Inc. during an initial public offering (IPO) in front of the Nasdaq MarketSite in New York, USA, on Thursday, September 26, 2019.
Michael Nagle | Bloomberg | Getty Images
CNBC’s Jim Kramer said Friday that he believed Peloton shareholders should be on the lookout for the fitness equipment maker’s “disastrous” quarterly results the previous day.
“Peloton went too far with this Acquisition of Precor and people tend to go back to real gyms rather than buying equipment at home. Worst of all, management seems completely ignorant about these issues, talking about all the leverage they can use to keep things under control, ”said the Mad Money presenter.
“But I don’t want control, I want growth. This is what Peloton is missing right now, so I would be a seller next time if you haven’t sold it yet, ”he said.
Peloton shares fell 35% on Friday to hit a 52-week low as investors reacted to larger-than-expected losses from the company in the first quarter of the fiscal year and slower sales growth. Peloton, which released data after the market closed on Thursday, also cut its forecast for the year. On Friday, the company suspended recruiting across all departments, CNBC’s Lauren Thomas said.
Peloton shares, which posted impressive gains at the start of the Covid pandemic, are down 63% since the start of the year. However, with dismay, Kramer said: “I do not see that many institutions are trying to catch bottom fish.”