David Einhorn speaks on the Sohn 2024 convention in New York on April 3, 2024.
Adam Jeffrey | CNBC
Shares of Peloton jumped greater than 11% on Wednesday after Greenlight Capital’s David Einhorn mentioned the corporate’s inventory was considerably undervalued, CNBC has discovered.
Einhorn made the presentation on the Robin Hood Investor Convention. It was not instantly clear what Einhorn thought Peloton’s inventory ought to commerce at.
He made the case for the corporate whereas driving a Peloton bike, an individual accustomed to his remarks mentioned.
Over the summer season, Greenlight Capital, the hedge fund that Einhorn based in 1996, disclosed that it had a $6.8 million stake within the firm as of June 30.
Peloton shares are usually unstable and had been up simply over 1% thus far this 12 months, as of Tuesday’s shut.
Einhorn’s feedback come a day after the corporate’s announcement was a partnership with Costco to promote its Bike+ within the retailer’s shops and on-line because it seeks to achieve youthful, extra prosperous customers with the discretionary earnings to purchase costly train gear.
The corporate is it is currently managed by two board members after CEO Barry McCarthy stepped down earlier this 12 months. It’s within the technique of discovering a brand new CEO and expects to announce its subsequent high government this 12 months.
In its August earnings report, Peloton indicated it was able to focus extra on profitability over progress after completion of a large-scale refinancing which pushed again its debt maturities and purchased it a while to impact a turnaround.
Peloton didn’t instantly reply to CNBC’s request for remark.
