Peloton to Reveal AI-Infused Hardware Lineup

Watch Peloton to Reveal AI-Infused Hardware Lineup - Bloomberg on Dailymotion

Transcript

00:00How wholesale is the change going to be for Peloton this week?

00:04This is going to be their biggest hardware revamp in at least half a decade.

00:09This is under new CEO Peter Stern.

00:11I know a lot of us love and use Peloton, but they've been struggling lately from a revenue perspective,

00:18from a sales perspective, from a profit perspective, management perspective,

00:22but also from a products perspective, and it's time for them to step it up under new leadership.

00:27And that's what they aim to do this week.

00:28Peter Stern will be holding a keynote address in the middle of the week

00:32and introducing an end-to-end hardware refresh that includes new bikes, new treadmills, new rows,

00:39a fully upgraded operating system across all Peloton hardware that deeply integrates

00:44what they call internally Peloton intelligence.

00:47This is AI for personalized coaching and creating plans for users.

00:52So this is a big refresh.

00:54This is Peter Stern's moment to put his stamp on the company.

00:57The last CEO, Barry McCarthy, basically ran the company into the ground,

01:03something that they said was necessary after the CEO before him, co-founder John Foley,

01:08pulled some levers that put the company in a very bad financial position.

01:12So we'll see if Stern is the one to be able to turn things in the correct direction.

01:16Mark, Cara and I are both users of the hardware and subscribers to the platform.

01:20There'll be an audience watching the show that have like deja vu and say, well, hold on,

01:24isn't this the latest of several turnarounds that have happened in the last many years?

01:30The last turnaround was mostly focused on re-architecting the fundamentals of the company.

01:35They moved production to third-party manufacturers.

01:39They shut down facilities.

01:42They tried to right-size the company.

01:44They did, I think, four or five different rounds of layoffs.

01:47What Peter Stern is doing after that was done by the last CEO is actually trying to go into growth mode here,

01:54which means rolling out new products and new initiatives.

01:58No new products or major initiatives are rolled out under the prior regime.

02:02So this is about bringing new hardware into the market, and we'll see if that's successful for them.

02:08You know, so far, they're up quite a bit on an annual basis.

02:14Let's see if investors like the hardware.