The Sellers Analysis Group (that’s me) nonetheless says Apple ain’t gonna purchase Peloton, however the rumors persist.
Deepwater Asset Administration — headed by former tech analyst, Gene Munster —final week introduced their 2024 predictions, which included the prediction that in 2024 Apple will lastly purchase Peloton.
As famous by Join the Watts, though analysts persistently predict this acquisition, the notable distinction with Deepwater Asset Administration is that final 12 months, 8.5/10 predictions from Deepwater had been precisely predicted – in different phrases, this is able to be a listing to look at. The Apple-acquiring-Peloton prediction is as follows:
“Apple will look to bolster their exercise phase in 2024 by including health tools to go with the Watch and health monitoring software program. Peloton has a loyal subscriber base of about 3 million customers that can add about $1.7B to Apple’s subscription income, moreover this matches effectively into Apple’s continued funding in well being and wellness.”
This forecast isn’t new. A Could 2022 report from Bloomberg claimed that Peloton is in search of a significant firm like Apple or Amazon to purchase a stake of round 20% in its enterprise in an effort to enhance the corporate’s fortunes amid dwindling demand for its merchandise and fierce competitors from providers like Apple Health+.
A January 2022 article from The Data stated the suspension of Peleton’s bikes and treadmills on the time “feels just like the prelude to an acquisition of the troubled health tools maker” and that “certainly Apple should be the plain purchaser if it involves that.”
Per The Data: If Peloton is to have a future, it might be higher off as a part of an even bigger, extra diversified firm. Apple is a perfect candidate to tackle that venture. It has the Health+ subscription service for courses and it markets the Apple Watch as a tool that may assist with jogging and different train actions. It might shut Peloton’s shops and promote the tools by its personal shops. And hey, after right this moment, Peloton’s market capitalization is right down to $7.9 billion. Prepare dinner might pay for that by dipping into the change jar in his kitchen.
Sure, Apple might definitely afford to purchase Peloton. Nevertheless, the corporate already makes computer systems, tablets, smartphones, smartwatches, sensible audio system, equipment, and is engaged on the Imaginative and prescient Professional and, maybe, an Apple Automotive.
I feel the very last thing the corporate wants is so as to add bikes, treadmills, and different health tools to its repertoire. The corporate is already at risk of attempting to compete in two many classes.
