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shares of peloton (NASDAQ:PTON) Shares are up 9% as of 12:30pm ET Thursday after the connected fitness platform specialist announced an exclusive new content partnership with social media platform TikTok.
Why Peloton is joining forces with TikTok
Specifically, Peloton and TikTok are launching a new dedicated co-branded fitness hub on the China-based social media platform titled “#TikTokFitness Powered by Peloton.” The hub includes custom Peloton content, including hand-picked live classes, original instructor series, creator partnerships, celebrity collaborations, and more.
Peloton previously announced a partnership with Apparel. lululemon In September last year, we concluded a contract to sell the company’s products. Amazon But this will be the first time Peloton has created custom social content for partners outside of its own channels. It’s not hard to see why Peloton, with his over 1 billion active users worldwide, chose to partner with the leader in short-form mobile her videos.
What’s next for Peloton stock?
Peloton stock has risen nearly 30% since early November 2023, helped by a strong end to the year for the broader market. But the stock is still down about 65% from its 52-week high in February of last year, as the company endures mounting losses and a shrinking subscriber base. We are also continuing to transition from hardware to digital subscriptions.
Peloton has taken a big step in the right direction with its transformation, but it remains to be seen whether partnerships like this one can generate significant revenue growth and steer the company toward reducing its losses. Until we see concrete evidence to that effect, investors should tread carefully when considering Peloton as a potential portfolio candidate.
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John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Steve Symington has a position at Lululemon Athletica. The Motley Fool has positions in and recommends Amazon, Lululemon Athletica, and Peloton Interactive. The Motley Fool has a disclosure policy.
“Why Peloton Stock Soared Today” was originally published by The Motley Fool
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