Peloton Technology

What to make of Peloton's confidential IPO filing

Illustration of a businessman riding a silhouette of a Peloton bike
Illustration: Sarah Grillo/Axios

Peloton, the connected fitness company, said that it filed confidential IPO paperwork. No specifics were disclosed, but word is that Goldman Sachs and J.P. Morgan are lead bankers, with plans to price the offering in September.

Why it matters: Peloton may be first out of the gate for the post-Labor Day IPO rush, and will confound analyst "buckets." It's a hardware maker that's also a subscription content creator that's also a streaming software company that also does its own last-mile logistics. CEO John Foley is known to prompt cynical chuckles by calling Peloton the next Apple, but it's hard to think of a much better comp.

Why companies struggle to profit off the "experience economy"

party balloons that spell MEH
Illustration: Aïda Amer/Axios

Eventbrite was one of the hottest IPOs of 2018. After pricing at $23, it closed up 60% at $36.50, giving the ticketing company a valuation of $2.8 billion. Today, just over 6 months later, the stock is languishing below its IPO price, at $18.41, and well over a billion dollars' worth of market value has evaporated.

The big picture: Eventbrite was sold as a way to bet on a booming "experience economy." The intuition: Companies that can deliver real-life experiences have real value in a world increasingly intermediated by smartphone screens. The problem: Companies are having difficulty turning that intuition into stable profits.