The devastating decline of Peloton

From $167 to under $7 ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ Imagine buying in at $167.42 and getting out at $6.86. I'm sure there's somebody in this country who did something like this... During the pandemic, you had a host of people saying everything had changed. The fitness industry was supposedly going to be revolutionized. - People would never leave their homes again if they could help it. - Working out at home was a powerful status symbol. - You couldn't settle for equipment from just anybody. Peloton (PTON) was the model company for those who believed this. Its pricy equipment supported a classy, high-end brand. For successful urbanites in spacious apartments or new home office employees in large suburban or rural homes, a piece of Peloton exercise equipment was a great way to prove "I have arrived." But the company began fading fast... and even some issues created by the pandemic itself disrupted supply chains. The company had to begin cutting prices, which complicates the brand issue. Now, it's a major question what kind of a future Peloton has. The moral is to take language about an industry being "transformed" with some skepticism. Obviously, when we are in the midst of something, events may look bigger than they are. The natural bias is to exaggerate what is happening. There are some events where I think language about "transformation" is warranted - as with AI's impact on the tech industry. But even that may take some time for the real impact. Right now is just the precursor. The pandemic was a strange time. The conditions forced on the market didn't last, and couldn't have lasted. Businesses that built their reputation and operating model on these temporary conditions are suffering now. The business cycle is a constant of human history - something as timeless as supply and demand. That's why it's important to trust in a process, and not just in a temporary Narrative. Keep Moving, Corey Snyder Publisher, Rogue Investing P.S. High-end fitness equipment is not the only industry out there facing a post-pandemic reckoning. My friend Jeff Bishop hosted a live event this week that broke it all down, and showed viewers the new tool he is using to unlock huge wins during this fallout. "Tech Reckoning 23'" replay is available now, but do not sleep on this, as I am not sure how long they will leave it up. [Take me to the FREE broadcast now.]( WORD ON THE STREET Dimon: Get Ready To PANIC - Debt Negotiations Delayed - A meeting between Republican leaders and President Joe Biden to discuss the debt ceiling has been delayed until next week. We're getting down to the wire here. "Everybody in this meeting reiterated the positions they were at," Speaker Kevin McCarthy (R-CA) said earlier this week. - "Potentially Catastrophic" - JP Morgan Chase's Jamie Dimon said the United States could suffer "potentially castatrophic" consequences if it defaults after failing to raise the debt limit. "The closer you get to it, you will have panic," he said. Dimon said a default would hit "contracts, collateral, clearing houses, and affect clients around the world." "Please negotiate a deal," Dimon told Congress and the White House. (Image: [World Economic Forum]( CC-BY-SA 2.0) - Elon Musk Stepping Back From Twitter - It will be interesting to see how Tesla stock responds to this. Elon Musk says that Twitter has hired a new CEO who will begin soon. NBCUniversal executive Linda Yaccarino may be the new hire, according to several reports. - Labor Market Cooling Off - New figures from Labor Department show jobless claims for the week ending May 6 were up by 22,000, reaching 264,000. That's the highest level for jobless claims since October 2021. Paradoxically, that may be good news - encouraging the Fed to back off the program of endless interest rate hikes. (DIS) HOT SPOTS: What's Going on in Geopolitics - Israel Hit By Hundreds Of Rockets - At least one person is dead after Israel was hit by hundreds of rockets. Palestinian militants are retaliating against an Israeli campaign against the group Islamic Jihad in the Gaza Strip. - South Africa Supplying Russia With Ammo - The American ambassador to South Africa accused South Africa of supplying weapons and ammunition to Russia. The accusation by Ambassador Reuben E. Brigety II puts South Africa at risk of American sanctions. China will be watching this case closely. - Record Migration Into The United States - Illegal border crossings into the United States are over 10,000 per day this week as the Biden Administration is lifting Title 42 pandemic restrictions on immigration and asylum. "We are clear-eyed about the challenges we are likely to face in the days and weeks ahead, and we are ready to meet them," said Homeland Security Secretary Alejandro Mayorkas. CUTTING EDGE: What[']( Happening In Tech - Meta's AI Testing "Playground" - Meta has created the AI Sandbox, a "testing playground" that will allow advertisers to try out various tools created by AI. A sizable chunk of the $30 to $33 billion Facebook is putting forward in capital expenditure this year is reportedly directed towards AI. - Rumble Loses $235 In Market Cap – Tucker Carlson moving his show to Twitter may be a major boost for Twitter's traffic, but it could cost Rumble dearly. RUM lost about $235 million in value before the stock claimed some losses yesterday. - "Dungeons & Dragons" Gets A Streaming Channel - "Dungeons & Dragons: Honor Among Thieves" is a success, bringing in more than $200 million worldwide. Now, Dungeons & Dragons is going to support an entire streaming channel. Dungeons & Dragons adventures will feature 24 hours of D&D content a day. The channel will be free and reportedly supported by ads FOR YOUR CONSIDERATION --------------------------------------------------------------- "While Biden, Yellen, and the other talking heads assure us that the banking crisis is over, PacWest Bancorp’s share price plummeted nearly 30% last week." market has escaped the clutches of the bears for now. Nonetheless, there's lingering distrust in the banking sector - and Dr. Brian Jones says that spells danger. This isn't just speculation - he'll break down the technical signals happening right now. 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