Peloton Is Riding the K-Shaped Recovery
Surging sales of Peloton bikes, SUVs and brand-new homes stand in sharp contrast to the post-Covid reality for lower-income consumers.
Peloton’s staggering growth exemplifies a widening economic disparity that goes beyond the fitness space.
Photographer: Jeenah Moon/BloombergPeloton’s pricey stationary bikes and virtual spin classes have been a lifesaver for well-to-do Americans barred from their usual gym routines because of Covid-19. But the brand’s staggering growth also points to a disconcerting trend: The pandemic is exacerbating the gap between the country’s haves and have-nots.
Shares of Peloton Interactive Inc. have more than tripled in price this year as more people look to work out at home. On Thursday, the company said its revenue in the latest quarter surged 172% and forecast at least $3.5 billion in sales for fiscal 2021, far outpacing analysts’ expectations. Peloton’s subscriber base now exceeds 1 million and should top 2 million this year. Its market value eclipsed $25 billion this month — which, to put that into perspective, makes it more valuable than Delta Air Lines Inc. and the parent of Hilton hotels.