Peloton’s surge in popularity tripled its founder’s wealth, making him the latest billionaire minted amid the pandemic

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Peloton CEO John Foley

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The pandemic has been good for sales of Peloton’s luxury bikes.

That success, as people around the world were forced to search for ways to exercise without a gym or spin classes, has also been good news for company founder John Foley’s wallet.

The former Barnes & Noble executive has seen his wealth rise in-step with Peloton’s stock price in recent months as the company continues to report massive sales growth. And on Thursday, it reported its first-ever profit thanks to a 172% surge in new memberships to its monthly subscription workout class program that accompanies its bikes. 

Investors have piled into the stock, sending it to an all-time high of $98.61 this week, up 183% for the year. With a 3% stake and another 5% tied to options, that’s propelled Foley’s wealth to $1.3 billion, according to Bloomberg calculations.

He’s the latest billionaire to be newly minted as the stock market remains largely un-reflective of severe economic pain that’s swept across wide swaths of the United States and its 13.6 million unemployed workers.

Zoom, another so-called “stay at home” stock, has also seen gains that outpace broader markets, helping its founder’s wealth eclipse the $12 billion mark in recent weeks. Across the board, most US stock gains this year have been in large-cap tech companies, where executives are notorious for large ownership stakes.

As far as Peloton is concerned, the demand appears to be sticking around for a while.

“Given where we are in the quarter plus our significant backlog of bike delivery, we have a solid view into our first quarter results,” CFO Jill Woodworth told investors this week.

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The company’s also begun to lower the entry price for many products, including its flagship bike. That original model now starts at $1,895, down from $2,245, while a new, smaller treadmill now costs $2,495, down from the previous model’s $4,295.

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Source:: Business Insider

      

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