‘Cash Is Oxygen’

You know it's a slow news day when Peloton and Michael Burry compete for space above the digital fold. Summer vacations are upon us, and stocks are higher, which together means there's little incentive to trouble oneself with markets -- or stories about markets. Filling the languid void Friday was news that Peloton is slashing almost 800 jobs and raising prices. With sincere apologies to the newly jobless, I'd gently suggest nobody cares anymore. Peloton was a "story stock," and notwithstandin
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12 thoughts on “‘Cash Is Oxygen’

  1. Mr. H offers good reading during all four seasons. I’ve been following him for a while.

    Perhaps Blurry was making a reference to self-destructive behavior related to increased credit card balances? I can only guess.

    Different strokes for different folks. No Pelotons for me. I prefer an educated trainer who is schooled in multiple martial arts, Pilates, and yoga. And I ride a nice Bianchi on the local bicycle trails.

    1. Do you drive a Dodge Stratus?

      Of course you don’t, I’m just busting chops. But you used to right? Hell, I used to drive a Dodge Intrepid, so no stones being thrown here.

  2. LOL, certainly emitted a wry chuckle even before the attractive entry point line

    CEO Barry McCarthy outlined next steps in the company’s “ongoing transformation,” which include hiking the price of “Bike+” by “+” $500 to $2,495. The price of a “Tread” will be $3,495, up 30%

  3. I tried to follow Burry on Twitter for a while, but he doesn’t say anything different from dozens or hundreds of other bearishly-inclined FinTwit people say, and he provides no data or analysis. In general I’m only interested in following people whose tweets or posts provide value other than their declarative statement.

  4. My feeling, nothing more, is that investors generally expect poor reports and negative guides from retail. There will be single stock volatility, where the few names thought to be immune turn out to not be or names thought to be dark toast show only moderate toasting, but I wonder how the retailers’ reports will affect the macro picture.

    To the extent that they deliver unexpectedly bad news, that seems set to feed into the peak inflation and pressure to pivot narratives.

    For the group, it’s usually one of the first to fall apart so it’s also usually one of the first to buy. I bought a few retailer names after 1Q reports, still have only 1/3 rd positions.

  5. Inventories will be a thing on the calls. Intuitively, one would think the companies selling necessities (think food and gas) would hold up better. That being said, it did not help Target and Walmart so far. Costco has held up better (where the gas lines look like something from the 1970s).

  6. “There was something tragically ironic about a company which thrived on product demand driven by stay-at-home culture unveiling a return-to-office mandate as part of a turnaround plan aimed at reversing a bike wreck brought on in part by the end of the stay-at-home era.”

    With this quote, H perhaps has uncovered the salvation for Peloton’s woes — exercise equipment which is neither traditional, nor stationary, but which moves in tight, vertiginous circles that increase nausea levels, but not fitness.

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