Peloton Plummeted 14.5%

Tale of the Tape

Good evening, ladies and gentlemen. That’s a wrap for Wednesday. 🎭

The market was mixed. The Dow dashed to another all-time high while the Nasdaq and Russell 2000 both tumbled 0.30%. The S&P 500 finished flat. 

Energy was the strongest sector by a long shot— $XLE surged 3.21%. ⚡ Basic materials bopped 1.26% and financials followed up 0.82%. Nothing but blue sky for both sectors. 

Utilities cracked 1.69% (not nice) while real estate retreated 1.47%. 

The crypto craze continues. Both Bitcoin and Ethereum inched up ~7.5%. Doge fetched another 11%. The crypto cracked $0.69— nice. 🐕

The rug was pulled on Peloton after the company recalled every. Single. Treadmill. $PTON plopped 14.5% as the stock closed at its lowest price since last September. Read more below. 

Etsy, Paypal, and Uber all reported earnings after the bell. Hear Shake’s take on tonight’s episode of After Hours. 🌌 

T-Mobile turned up 4.4% after last night’s earnings release. 🎉 $TMUS closed less than 1 point off all-time highs. Will the cellular service break out to blue sky?? Time will tell… Here’s its daily chart:

And here are the closing prints: 

S&P 5004,167+0.07%
Russell 20002,241-0.31%
Dow Jones34,230+0.29%

Earnings Round-Up

Uber beat earnings estimates, but fell short on revenue. Delivery bookings grew 166% YoY. 🚗 💨

Here are the stats:

EPS: ($0.06) vs ($0.54) est.
Revenue: $2.90B, -10% YoY
Mobility: $6.8B, -38% YoY
Delivery: $12.46B, +166% YoY

Uber CEO Dara Khosrowshahi shared:

Uber is starting to fire on all cylinders, as more consumers are riding with us again while continuing to use our expanding delivery offerings. We will continue to innovate and find new ways to deepen engagement with our customers, as the only global platform that helps you go wherever you need and get whatever you want.

$UBER was flat after hours.

PayPal topped estimates on both top and bottom lines. The online payment company even achieved record payment volume. 💪

Here are the stats:

EPS: $1.22 vs $1.01 est.
Revenue: $6.03B, +29% YoY
Total payment volume: $285B vs $265B est.

$PYPL popped 5% after hours.

Etsy released Q1 earnings which “exceeded expectations” on both the top and bottom lines. Still, $ETSY fell 8% after hours. 👎

Here are the details:

EPS: $1 vs $0.88 est.
Revenue: $550.6M, +141.5% YoY

Etsy’s CEO, Josh Silverman, commented:

We moved the needle by growing our team to deliver an exciting product roadmap aligned with our Right to Win strategy, and are executing a dynamic marketing strategy focused on driving frequency and keeping our buyers engaged. In a time when human connection is so vital, Etsy provides a one-of-a-kind community where sellers are empowered to grow their businesses,  reaching buyers who value finding items that express their unique identity, while putting their money where their heart is.

$ETSY erased 8% after hours.

General Motors easily beat Wall Street expectations despite widespread factory closures prompted by semiconductor shortages. CEO Mary Barra expects the company will offer autonomous vehicles later this decade. 👀

Here are the numbers:

EPS: $2.25 vs $1.04 est.
Revenue: $32.47B, -1% YoY

Mary Barra said:

The speed and agility of our team are front and center as we move from managing through a pandemic to managing the global semiconductor shortage. This remains a challenging period for the company as we emerge from 2020, but the team continues to demonstrate its ability to manage complex situations.

$GM gained 4% today.

Peloton Pulls Back

Peloton recalled all Tread and Tread+ treadmills just 18 days after the company refuted Consumer Product Safety Commission claims that the devices are unsafe.

$PTON dropped 14.5% and closed at its lowest price since September 16, 2020. Here’s the daily chart:

The recall follows the unfortunate death of a child and 70+ injuries tied to the treadmills. Peloton CEO John Foley recognizes the company’s mistake in challenging CPSC warnings:

The decision to recall both products was the right thing to do for Peloton’s Members and their families. I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+. We should have engaged more productively with them from the outset. For that, I apologize. Today’s announcement reflects our recognition that, by working closely with the CPSC, we can increase safety awareness for our Members. We believe strongly in the future of at-home connected fitness and are committed to work with the CPSC to set new industry safety standards for treadmills. We have a desire and a responsibility to be an industry leader in product safety.

If you own a $PTON treadmill, the company asks that you stop using it and contact Peloton for a “full refund or other qualified remedy.”

Stay safe, y’all! For more information on the recall, read the press release here.

🚨 New Merch Alert 🚨

Summer is here. Is your warm-weather wardrobe ready? ☀️ 

Stop by the Stocktwits Shop to check out our latest arrivals! We’ve got plenty of new merch that’ll look great on you this summer, including some fresh new tees to flex on your friends. 😎 Take a look!!

Swim. Bike. Run. Number one?

Do you enjoy any of the activities above? What about all of them at once? 😏 If so, you’ll be excited to hear the Super League Triathlon has announced its race schedule— with a US debut in Malibu! (Seriously, this just keeps getting better!)

The Super League Triathlon is a series of pro races to challenge top international athletes (20 men and 20 women) in a series of quick and exciting races. The goal? To win the esteemed “best all-around athlete” title. 🏆

Super League Triathlon CEO and Co-Founder Michael D’hulst shared his excitement for the triathlon’s Malibu debut:

We handpicked the Malibu Triathlon for this investment due to its incredible history in spring and Olympic distance racing and its incredible potential for Super League Triathlon.

Care to compete with the pros? Registration for the Malibu Tri is open now!

…Or if you’d rather enjoy watching other people work hard, you can watch the live race here on September 25 and 26. We know which option we’re choosing. 🍿 📺

Oopsies! 🇧🇪 🇫🇷

A Belgian farmer mistakenly moved the 200-year-old stone marking the French and Belgian borderbig oops.

After Napoleon’s Waterloo defeat two centuries ago, a stone border marker was planted between Erquelinnes, a Belgian village, and France’s Bousignies-sur-Roc. After a local farmer saw it in his tractor’s path, however, he moved it— and Belgian’s border— 7.5 feet into French territory. 🤣

Erquelinnes’ mayor, David Lavaux, told CNN

We know exactly where the stone was before, right next to a tree… In 2019, during the 200th anniversary, they were geo-localized very precisely… It should be resolved tomorrow, we are about to find the person that moved the stone, so we can avoid any troubles. I still have to verify who the land owner is.

Imagine accidentally altering international geography on your morning stroll. ☕ 🤦

Earnings This Week

Be sure to know when your stocks report earnings. Here’s the earnings calendar

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