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  "documentTitle": "Peloton Interactive (PTON)",
  "authorId": "52_Citron_Research",
  "authorName": "Citron Research",
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  "sourceTypeSlug": "short_seller",
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  "presentationDate": "2019-12-10 00:00:00",
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  "notes": "The slide uses a skeptical tone to argue that Peloton's valuation is disconnected from reality and that management is preparing to exit.",
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      "text": "Peloton management is clearly eager to cash out.",
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      "text": "The Peloton app has taken someone with a dusty old treadmill to a fitness enthusiast overnight who runs and does yoga. This person's dusty old treadmill happens to be in front of a 60-inch smart TV. Whether it be Netflix, YouTube, CNN, or CNBC, this person has never used this treadmill until they could download the Peloton app. Although the person is not a fitness enthusiast, they choose to pay $12.99 a month instead of the plethora of free content on YouTube. Most importantly, this person will eventually buy a $3K-$4K treadmill and pay $39 a month for the exact same offering for which they had been paying $12.99",
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      "text": "market cap: $10BN",
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      "text": "Peloton management is clearly eager to cash out. In 2017 and 2018, Peloton repurchased almost $200MN of stock from insiders including CEO John Foley, President William Lynch, COO Thomas Cortese, and Chief Legal Officer Hisao Kushi at as low as $5 per share. Peloton currently has a float of ~40MN shares. With Peloton's upcoming lockup expiry in March, an additional ~240MN shares will become available for sale. While we believe Foley will say or do anything to keep the stock up until the lock-up expires, that is OK.... we are patient.",
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      "kind": "paragraph",
      "text": "Post WeWork and a new market reality that more heavily scrutinizes money losing companies, why is Peloton trading at a market cap of $10BN? To put Peloton's ridiculous valuation into perspective, we compared the company's valuation on a per user basis versus other leading fitness, streaming, and popular apps. The takeaway is clear. Peloton at $10BN or even $5BN makes zero sense.",
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