Peloton are known for that super fancy exercise bike. Ya know, the one that seems to keep giving TV characters heart attacks?!
Background: Peloton are a fitness company known for that super fancy exercise bike. Ya know, the one that seems to keep giving TV characters heart attacks?!
What happened: The company soared during COVID, but as the world opened up...Peloton came hurtling back to earth. Now, the company's so down in the dumps it's attracting attention from companies like Amazon, Nike and potentially Apple.
What else: While nothing's confirmed, we know investors like the sound of an acquisition. So much so, they sent shares surging 30% on the news. Wowza.
💡We know mergers and acquisitions can affect a company's share price. But even the prospect of one can also be reflected in price.
💡Generally, when one company acquires another, the stock prices of the 'target company' (aka Peloton in this case) jumps. This is because the acquiring company (aka Amazon or Nike) will most often pay a premium on the target company's current share price.
💡So even if the acquisition doesn't take place, investors take that into consideration. Which means until anything is locked in...there tends to be a bit of a share price volatility.
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