Peloton (PTON, Financial) experienced a significant surge in its stock price, climbing over 11%, following an endorsement by David Einhorn (Trades, Portfolio), founder and president of Greenlight Capital. Einhorn shared at the Robin Hood Investors Conference that he believes the stock is significantly undervalued, although he did not specify a target price.
Einhorn, who is known to use Peloton's products, has demonstrated confidence in the company. His hedge fund, Greenlight Capital, disclosed a $6.8 million stake in Peloton as of June 30. Despite the fluctuation in Peloton's stock price, it has increased slightly by over 1% this year.
On the business front, Peloton announced a partnership with Costco to sell its Bike+ in stores and online, aiming to attract younger, wealthier consumers. This strategic move followed the resignation of CEO Barry McCarthy earlier in the year, leaving the company under the interim leadership of two board members as they search for a new CEO.
Peloton intends to focus more on profitability after completing a major refinancing, which has extended its debt maturity and provided the company with time to improve its financial performance.
