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  • 2 years ago
Peloton Interactive Inc (NASDAQ:PTON) shares are popping after the close on Wednesday after the connected fitness company announced a five-year deal with Lululemon Athletica Inc (NASDAQ:LULU).

What Happened: Pelton and Lululemon announced a five-year strategic global partnership, making Pelton the athletic apparel company's exclusive digital fitness content provider. Lululemon will become the primary athletic apparel partner for Peloton.

Under the partnership, the two companies will engage customers across the globe through technical athletic apparel, real-life experiences, special programming, and original content.
Transcript
00:00 Lulu Lemon, Peloton announcing a five year global partnership, Lulu to become Peloton's
00:06 primary apparel partner, Peloton to become exclusive digital fitness content provider
00:14 for Lulu Lemon.
00:16 Peloton will develop all the content for Lulu Lemon Studio beginning early 2024.
00:22 Can this turn the bike around?
00:26 Getting a little pop, but got to six bucks in the after hour after news.
00:32 But when you see a move like that, then you sell off 75 cents.
00:36 It's not a great technical indicator or great technical side, kind of holding here at five
00:43 and a quarter.
00:44 I mean, is it good news?
00:46 Is it great news?
00:47 No, I don't think it's great news at all.
00:50 But keep it on the pre-market high.
00:52 And I'll take the exact opposite opinion on this.
00:54 This news cannot be better for Peloton.
00:58 This news cannot, this is the whale.
01:02 This is like the best contract that they could possibly get.
01:06 You know, Lulu Lemon, which is obviously, you know, we've talked about the resilience
01:10 of the consumer and they still go there.
01:12 They cannot partner with a better partner for them.
01:15 And the stock still giving back most of the gains.
01:19 If the stock can't rally on this, the stock is not going to rally on anything.
01:24 That's what I will say.
01:25 So it is up 13%.
01:26 And if you are a bull for Peloton, you better see it start to get back up to where it's
01:30 at six bucks in a hurry.
01:31 Because if it does not, the news cannot get better for Peloton.
01:35 To say that again, this is the truth.
01:38 This was huge news for Peloton and it popped 35% on it.
01:43 The algos had up 35% instantly.
01:45 But you know what?
01:46 Then the algos realized we're not in 2020 anymore.
01:48 We realized the overhead supply issue.
01:50 And we realized that Peloton has an issue of they may never make money again if they
01:54 ever made money.
01:55 And Peloton has an issue of like burning cash.
01:57 Peloton has a lot of issues.
01:59 Is Lulu Lemon the savior?
02:01 Well, it's a potential savior, but that's a stretch.
02:05 I still think Peloton is going to go bankrupt.
02:09 So I'm not buying this rip on it.
02:11 I'm telling you, if it can't rally today on this, this is just another nail in the coffin.
02:15 So it better rally today on this.
02:17 If it doesn't, you don't want any part of this.
02:19 Well, it is up 60 cents.
02:21 If you're just looking for a fade in it, you know, just like everyone, just forget about
02:25 the news.
02:26 It should come down and touch the top of yesterday's range at 479, 481.
02:32 Actually you're too high.
02:33 So we'll make that support for now.
02:36 Like I said, it's just disappointing when you get a pop like that at six bucks and then
02:41 you fall back.
02:42 But someone has an inkling here at five and a quarter right now.
02:45 They've been absorbing whatever offers have been coming at this at this area.
02:50 So look at a gap fill on that.
02:52 But six bucks.
02:53 I mean, even if you're looking at the daily here, early September, you had a gap down
02:58 at six bucks that almost fills the gap.
03:00 So I wouldn't get too bullish in this until we could get above six bucks.
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