今晚建仓了，先买了再说。

Why did you think you could fix it?
I know subscriptions. I know consumer-facing businesses. I know growth. I know founders. I certainly know business models. And I know from my experience that product market fit is the hardest thing on the planet to find. And once you find it, it’s almost impossible to screw it up no matter how hard you try. And arguably, we’ve tried pretty hard here, but the customer love is just off the charts. The monthly churn is less than 1 percent.
What did you see in the story?
The two narratives on the company: One is “Implosion peaks during Covid: downward spiral, incompetent management team, company should get sold.” Another narrative is “No, actually Covid was the marketing campaign the company could never have afforded. Peloton has built this large recurring revenue base with subscribers that is growing at 20-plus percent a year. The cost structure got out of whack with revenues, and they spent money on things that they shouldn’t have. But if you resize the cost structure, and you begin to reinvest in growth with product-line extensions and new markets and some other things, then there’s a lot to work with here.
We agree with Barry that the product market is the hardest thing to find, and that the magic of Peloton is still in place. What needs to be done at this stage is their operations need to be fixed. We believe that Barry is the right man for the job.
As we are writing this letter, Peloton announced that they are exiting all owned-manufacturing operations and will have Rexon (leading Taiwanese manufacturer) to be the primary manufacturer of the hardware for their iconic Bike and Tread products lines.
“Today we take another significant step in simplifying our supply chain and variablizing our cost structure – a key priority for us. We believe that this along with other initiatives will enable us to continue reducing the cash burden on the business and increase our flexibility. Partnering with market-leading third-party suppliers, Peloton will be able to focus on what we do best