Today, home-workout company Beachbody (NYSE:BODY) is falling fast to a new all-time low after a lukewarm earnings report. At the time of writing, BODY stock is down 22.6% on the day after reporting quarterly revenue well below expectations. This comes as more and more Americans go back to the gym. Despite promising news of workout programs streaming on Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google TV and Android TV, Beachbody is in the midst of a brutal pullback.
So what else is driving the health and wellness platform down?
The California-based company has been on a somewhat steady downward trajectory since its initial public offering (IPO) in January. Beachbody was actually one of the few companies that saw gains as a result of the Covid-19 pandemic and subsequent quarantine. Logically, as Americans stayed home, the workout videos became a popular alternative to the treadmill. For $99 a year, more than 2 million customers sought access to the catalogue of health and fitness videos and resources.
Unfortunately for the company, as the pandemic dwindles down, so too is much of Beachbody’s clientele.
What Are the Long-Term Prospects of BODY Stock?
There aren’t many silver linings in sight for this company, which has dubbed itself the “future of fitness.” Aside from the GoogleTV streaming announcement, much of the earnings report was negative.
Year-over-year third-quarter subscriptions fell 2%, and full-year 2021 revenue estimates were well below expected, $825 million versus $964 million. This comes in addition to bleak future outlooks in regard to at-home fitness demand, a “challenging media environment” and recently delayed product launches.
Unfortunately, analysts were listing.
Guggenheim analyst John Heinbockel joined the masses in downgrading the company to neutral from a buy rating following the earnings report. Heinbockel also warned readers of potential short-term volatility as it settles into its new price level. Baird also lowered its rating to neutral, while throwing out a price target of $4. Currently, it’s sitting at $3.70.
It’s unclear what steps Beachbody will need to take to return to favor. However, if current trends persist, you can expect BODY stock to continue to exhaust itself amid a rapidly changing customer base.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
