Peloton (NASDAQ:PTON) stock is on the move today on reports that the fitness company is looking to sell a stake in its business.
According to these recent reports, Peloton is searching for a buyer that will take a 20% stake in PTON stock. Specifically, the company is hoping to attract a big-name company or private equity firm for the investment.
So what’s the plan behind this reported sale? It’s no secret that PTON stock has been in a bit of a rough spot lately. The company’s shares are currently down about 55% since the start of the year and there’s no sign of a turnaround.
With this plan, Peloton is reportedly hoping to legitimize its stock by attaching the name of a reputable investor to it. The hope here is that this will help the company reverse the recent stock drop that’s been happening, Bloomberg notes.
The real question now is who would buy that stake in PTON stock? Unnamed sources claim that Peloton is seeking out several buyers but there’s one name worth noting. Prior rumors claimed that Amazon (NASDAQ:AMZN) would acquire the fitness company. While that didn’t happen, it’s possible the e-commerce giant could use the stake sale as an opportunity to invest in the company.
Today’s reports aren’t doing PTON stock any favors. The company has only seen about 10 million shares trade as of this writing. For comparison, its daily average trading volume is about 17.6 million shares.
PTON stock is down 6.4% as of Friday afternoon.
There’s more stock market news worth checking out below!
We’ve got all the hottest stock news traders need to know about for Friday! Among that is what has shares of Twitter (NYSE:TWTR), DraftKings (NASDAQ:DKNG), and Block (NYSE:SQ). You can check out all of this news at the following links!
More Friday Stock Market News
- Cathie Wood Just Sold Twitter (TWTR) Stock. Here’s Why.
- Why Is DraftKings Stock in the Spotlight Today?
- SQ Stock Is a Strong Buy After Q1 Earnings
On the date of publication, William White 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.
