Recent reports have indicated that Amazon and Nike have expressed interest in buying at-home fitness company Peloton. After these reports surfaced, stocks for Peloton rose 22% at the beginning of the week. Peloton recently saw a decline in the majority of the shares it had gained in the midst of the pandemic.
Reuters confirmed that a source revealed that Amazon and Nike have weighed in on a bid for Peloton. Though neither company has held official talks with Peloton just yet. In the past year, the at-home exercise equipment producer dropped its value from $50 million USD to $8 billion USD.
At the beginning of the pandemic, Peloton became a huge hit as people began looking for alternatives to their daily fitness routine. With gyms closing due to lockdown, Peloton was quickly the sought-after supplement to keep with workout regimens. Recently, bearish bets placed on Peloton’s shares have increased. Since the end of last week, short-sellers in Peloton have reportedly lost $250 million USD, yet “are still in significant profit.” Just last month, Blackwells Capital urged Peloton to fire its CEO and put the company up for sale. The Wall Street Journal reports that if Amazon were to go through with the purchase, it would give the tech company greater access to users’ data, benefitting them on future health and wellness projects.
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