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Peloton surges on reports of buyout interest from Amazon, Nike -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO : After the ringing and announcing the company’s IPO, a Peloton fitness bike was seen in New York City. It was appearing at the Nasdaq Market, New York City. September 26, 2019. REUTERS/Shannon Stapleton/File Photo/File Photo

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(Reuters) – Shares in Peloton Interactive (NASDAQ) Inc rose 22% Monday following reports that Amazon.com Inc had expressed an interest in taking over the company (NASDAQ) Nike Inc (NYSE:), a maker of exercise bikes, has lost the majority its shares gains from the pandemic.

Peloton’s share prices were at their highest level since September 2019, their launch. The shares had previously risen as high as 31% during the previous session.

According to Reuters, Amazon has made an offer for Peloton. A source also said that Nike is considering a bid.

Peloton and Nike did not immediately reply to my request for comment.

Recent bearish bets have increased on Peloton shares with short interest estimated at 14.1% as a percent of free floating nearly doubled, according to Ortex data.

Peter Hillerberg (ortex co-founder) said that short sellers in PTON are suffering losses of approximately $250 million. However, they still make a significant profit. Peloton’s share price was down by 84% during the previous year.

Blackwells Capital, an activist investor, asked Peloton last month to fire its Chief Executive Officer and make the company available for sale.

Russ Mould is an investment director for UK-based investment platform AJ Bell.

John Blackledge from Cowen and Co believes Peloton wouldn’t be the right fit for Amazon because Amazon sells mass-market services and products, while Peloton products are premium.

Peloton is scheduled to release its second quarter results Tuesday following market close.

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