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Data: FactSet; Chart: Axios Visuals

The pandemic was fantastic for Peloton — at first.

Driving the news: Over the two years since the at-home fitness company's IPO, revenues have more than quadrupled, from $1 billion to $4 billion. The company was also a poster child for pandemic-era share prices going parabolic, with the stock rising 760% between mid-March 2020 and mid-January 2021. Then, it plunged.

Why it matters: Peloton's share price peaked during the meme-stock frenzy of January 2021.

  • The company has had a string of bad news since then, including the recall of its treadmill; supply-chain problems; a greater-than-expected pent-up desire to get out of the house again after the vaccine arrived; and, now, a major HBO character being killed off by exercise bike in a premium cable premiere.

By the numbers: The share price is down almost 80% from its highs, and although it's still almost double its pre-pandemic level, the stock is trading at significantly lower multiples than when it went public.

Flashback: Peloton's IPO valuation of $8.1 billion worked out to 7.9 times trailing revenues.

  • That ratio rose to as much as 16.7 at the market peak in January; it's now just 3.2.

The big picture: Some of Peloton's fall is due to very real weakness in its fundamentals. But a lot of it is simply a function of the way in which meme stocks can rise just because they're rising, creating an air bubble under the share price and the potential for massive drops.

The bottom line: Peloton is still a $13 billion company — a great achievement for a firm that's less than 10 years old. Last year's meme-stock mania, however, makes it look like a massive disappointment.

Go deeper

Dan Primack, author of Pro Rata
Jan 11, 2022 - Economy & Business

Citadel Securities gets its first-ever outside investment

Illustration: Megan Robinson/Axios

Citadel Securities, the electronic trading firm controlled by Ken Griffin, raised $1.15 billion from Sequoia Capital and Paradigm at a $22 billion valuation.

Why it matters: This is the first-ever outside investment in Citadel Securities, which claims to have its digital fingers in around 27% of daily U.S. stock trades. Citadel Securities also has over 1,600 global clients, including large sovereign wealth funds, and this deal could be setting it up for an IPO.

45 million Americans under winter storm watches near New England

Computer model projection showing the winds moving around the powerful East Coast storm on Saturday Jan. 29, 2022. Image: https://earth.nullschool.net

Nearly 45 million Americans are under winter weather alerts and warnings from North Carolina to northeastern Maine Thursday night, as a major winter storm threatens the region.

Why it matters: It is predicted to be the biggest blizzard since 2018 to strike the Northeast with more than 2 feet of snow possible in parts of eastern Massachusetts, according to the National Weather Service.

Judge nixes Gulf of Mexico oil leases in climate-focused ruling

Tug boats prepare to tow the semi-submersible drilling platform Noble Danny Adkins through the Port Aransas Channel into the Gulf of Mexico on December 12, 2020 in Port Aransas, Texas. Photo: Tom Pennington/Getty Images

A federal judge on Thursday canceled the Biden administration's late 2021 sale of new oil-and-gas drilling leases in the Gulf of Mexico.

Why it matters: The ruling that the greenhouse gas emissions analysis by the Interior's Bureau of Ocean Energy Management (BOEM) was insufficient is a win for green groups that challenged the decision, as they seek to curb fossil fuel production.