Nov 5, 2019

Peloton deal doubles as trade war protection

Illustration: Sarah Grillo/Axios

Peloton on Tuesday disclosed that it paid nearly $50 million to purchase Tonic Fitness, one of its two bike manufacturing partners in Taiwan.

Why it matters: The deal is officially about helping Peloton better control its supply chain, but CEO John Foley tells Axios it also could help the company protect itself in case of future trade tensions.

"We aren't in China meaningfully, and are very comfortable with Taiwan, but this gives us more transparency into our upstream supply chain ... So we have more optionality if we find ourselves in the position of considering stateside manufacturing."
— John Foley

Peloton on Tuesday beat Wall Street estimates on both the top and bottom lines for its first fiscal quarter of 2020, but shares nonetheless fell on continued losses.

What's next: Foley says the company will continue to focus on growth over profits, but acknowledges that it's "pulling back on little things at the margin."

  • For example, it abandoned plans for a 30-second Super Bowl ad that would have cost between $3 million and $6 million.

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Fox Sports sells out Super Bowl ad inventory early

Ad data: SQAD; Viewership data: Nielsen; Chart: Andrew Witherspoon/Axios

Fox Sports has sold all of its advertising inventory for Super Bowl LIV, the company has confirmed to Axios. It's sold a total of 77 spots, with the most expensive 30-second spot costing $5.6 million.

Why it matters: The Super Bowl is one of the most visible advertising opportunities in America, next to the Olympics. As more television viewing moves to on-demand streaming, there are fewer big opportunities for advertisers to reach consumers live.

Go deeperArrowNov 25, 2019

Key manufacturing index contracts for the fourth straight month

The ISM's November manufacturing report released Monday contracted for the fourth straight month.

Why it matters: It's an unexpected decline as most industry watchers expected the reading to rise. Surveys have shown manufacturing output declining for more than a year.

Go deeperArrowUpdated Dec 2, 2019

The U.S. services sector bounces back

Data: Institute for Supply Management; Chart: Andrew Witherspoon/Axios

The U.S. services sector roared back in October, with the ISM's non-manufacturing report jumping to 54.7, up from 52.6 the month before, and beating expectations.

Why it matters: The services sector makes up almost 70% of the U.S. economy and has been consistently trending lower, following the manufacturing sector for most of this year.

Go deeperArrowNov 6, 2019