Peloton Reports a Huge Quarterly Loss 📉
Scott D. Clary | Daily Business, Tech & Finance Newsletter
Scott D. Clary
August 30, 2022
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Here’s whats happening:
- Peloton reports a huge quarterly loss
- What next for Bed Bath & Beyond (BBBY) after the collapse?
- GameFi investors prioritizing fun factor, survey says
- Supply chain startup FourKites secures funding
- Google Meet is stealing Zoom’s idea to easily unmute
Peloton Reports a Huge Quarterly Loss 📉
Peloton reported widening losses and slumping sales for its fiscal fourth quarter as the company attempts to win back investors with cost cuts and strategic shifts.
Losses mount:
- The connected fitness equipment maker reported a loss of $1.24 billion, or $3.68 per share, in its latest quarter from a loss of $313.2 million, or $1.05 a share, a year earlier. 🔻
- Revenue fell 28% to $678.7 million from $936.9 million a year earlier. That came in short of the $718.2 million analyst’s expectations. 🔻
Comments from the company CEO:
Peloton CEO Barry McCarthy said that Peloton would continue to spend more money than it brings in for the next several months.
“The naysayers will look at our [fourth-quarter] financial performance and see a melting pot of declining revenue, negative gross margin, and deeper operating losses,” he wrote in a letter 📃 to the company shareholders.
“But what I see is significant progress driving our comeback and Peloton’s long-term resilience. We still have work to do,” McCarthy added.
What Next For Bed Bath & Beyond (BBBY) After Collapse? 🔽
Bed Bath & Beyond (BBBY) stock is now a shocking name among retail investors, who, for the most part, were severely burnt in the latest meme bubble.
Key highlights:
- BBBY stock has a good run on the back of a return to risk assets and an equity market rally.
- The high short interest prompted retail traders back into the name.
- Further, Ryan Cohen’s RC Ventures taking a large option position further fueled the frenzy.
What happened to the stock? 🤔
BBBY stock moved quickly from $6 to $30 at the height of the frenzy; however, the stock saw a steep fall once news of RC Ventures selling its stake materialized.
The stock fell back to $9 before a modest bounce on the back of news it has lined up a badly needed loan.
What’s next for BBBY?
Currently, BBBY is not exactly in a healthy position with news of a loan deal. The company has serious financial challenges that will not be a quick fix. So, only time will tell how the stock will perform in the future.
GameFi Investors Prioritising Fun Factor, Survey Says 👀
GameFi is attracting a set of investors that tend to choose projects based on their use case rather than money-generating potential, according to the State of GameFi 2022 survey.
Key insights of ChainPlay survey:
- According to a ChainPlay survey, in which 2428 GameFi investors took part, 75% of participants first became interested in cryptocurrencies as a result of GameFi.
- While nearly half of the investors first entered the GameFi space initially for profits, 89% of GameFi investors lost money due to Crypto Winter 2022 — with 62% losing more than 50% of their profits. 🔻
- When it comes to future GameFi projects, 81% of GameFi investors are moving away from the traditional mindset and prioritizing the fun factor over profit-making as they seek positive in-game experiences.
What factors affected GameFi profits?
GameFi investors believe that poor in-game economy design (58%) was the main reason for their losses.
This was followed by a reward token price decrease (21%), a blockchain gaming sector bubble burst (15%), and bitcoin performance (6%).
Supply Chain Startup FourKites Secures Funding 💰
FourKites, a supply chain visibility platform designed for transportation into yards, warehouses, and stores, has raised $30 million in its latest funding round.
The investors:
The investment was from FedEx as part of a strategic partnership announced by the company in June.
Why does this funding matter for FourKites?
This funding comes at the back of the company letting go of nearly 8% of its workforce (about 60 employees) as part of the aforementioned layoffs.
Most of the layoffs were concentrated in platforms that FourKites had acquired over the past two years but has now built into its platform.
About FourKites:
Founded in 2014, FourKites is a leading supply chain intelligence platform, delivering real-time visibility and execution for Fortune 500 companies and third-party logistics firms.
Using patented artificial intelligence to calculate shipment arrival times, the company enables customers to lower operating costs, improve on-time performance, and strengthen end-customer relationships.
Google Meet is stealing Zoom’s idea to easily unmute
Google Meet will soon give you the ability to unmute yourself by holding down the spacebar and to mute yourself again by releasing it. The feature sounds a lot like Zoom’s push-to-talk feature.
The tech giant will start rolling out its own version of the shortcut to all Workspace users on September 9.
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