David Einhorn spoke at the 2024 Sohn Conference in New York City on April 3, 2024.
Adam Jeffery | CNBC
Peloton’s shares surged over 11% on Wednesday following Greenlight Capital’s David Einhorn stating that the company’s shares are significantly undervalued, as reported by CNBC.
Einhorn presented his case at the Robin Hood Investors Conference, although it was not immediately clear what he believed Peloton shares should be valued at.
During his pitch, Einhorn was reportedly riding a Peloton bike, emphasizing his confidence in the company’s potential.
Earlier this summer, Greenlight Capital, founded by Einhorn in 1996, revealed a $6.8 million stake in Peloton as of June 30.
Peloton’s stock has shown volatility, with a slight increase of just over 1% year-to-date as of Tuesday’s market close.
Einhorn’s endorsement comes on the heels of Peloton’s recent partnership with Costco to offer its Bike+ in stores and online, targeting a younger, affluent demographic with disposable income for high-end fitness equipment.
Following CEO Barry McCarthy’s departure earlier this year, Peloton is currently overseen by two board members as they search for a new chief executive, expected to be announced later in the year.
During their August earnings report, Peloton signaled a shift towards profitability over growth after a significant refinancing that extended debt maturities and provided breathing room for a potential turnaround.
Peloton has yet to respond to CNBC’s request for comment.