Peloton soared over 30% after reports that it’s exploring takeover options.
The specific move that could test investors who are holding short positions.
Peleton a fitness and lifestyle company is working with an adviser after an earlier plunge in Peloton’s shares made it a takeover target, according to people familiar with the matter, Bloomberg reports.
Peloton’s stock had fallen more than 80% from the high a year ago as the gradual easing of pandemic restrictions fueled concern that growth would slow.
Peloton’s valuation, deemed to be too expensive until early 2021, has come down sharply in the recent rout.
Blackwells said in the letter that potential buyers could include Apple Inc.Amazon and Nike.
Amazon.com Inc. has been speaking to advisers about a potential deal, the Wall Street Journal reported on Friday.
Nike Inc. is also considering a separate bid for Peloton, but Neither Nike nor Amazon have held direct talks with Peloton.
Analyst views on the likelihood of a deal are positive as Wedbush’s Dan Ives said a bid from Apple would make strategic sense given the tech giant’s focus on health initiatives