I've been a fitness fanatic since I was ten years old and a member of a health club for the last 30 years.
In the fitness world, fanciness always sells people and draws them in. Fancy equipment gets people's attention. The tendency is to think the equipment will make it easier to get in shape. Usually, that equipment becomes an expensive clothes rack or just another item to take up space.
The cold truth about fitness is that nothing is easy and your health can't be purchased. True fitness people know it comes down to two key points. Putting in very hard workouts and staying consistent with fitness routines over years. You can't buy fitness, just as you can't buy happiness.
Every January and February the health clubs are full of people with a new resolution of getting in shape. By March or April, those people are long gone and the people left are the diehard fitness people. The short timers often continue to pay for a year or more because they forgot the monthly bill is on their credit card or they HOPE they will get back on the fitness routine. The bottom line is a lot of money is wasted and given to the health club owners without them having to provide any benefit at ALL.
With Peloton, it's getting crushed. In the last 52 weeks, they were as high as $120 and now they are at $11/Share. They have never made any GAAP earnings and they are on a trend to increase their bottom line loses.
Why is this occurring? First, people think you can buy fitness. You can't. Second, people followed the crowd (herd effect) to buy the crazy expensive machine and a subscription to an on-line "motivator". You have to be internally motivated versus externally motivated for it to stick. Finally, the herd is now moving in another direction. They have forgotten about Peloton (just like the Jan and Feb health club members).
You don't need fancy equipment, memberships or subscriptions to get in shape. You need to be internally motivated and willing to work hard, very hard. You can accomplish the same fitness goals with just getting outside, walking, running, doing calisthenics or doing isometrics.
Don't be fooled into buying your health. Just get out there and make it happen.
Also, I wouldn't own a fad stock like Peloton. The crowd has moved on and is now interested in something else. The people who bought the IPO just made the founders really, really rich, while the shareholders got nothing!
Be smart, be well-read, be aware and be successful.
