i love peloton. i'm a user. we are seeing faltering to man i think right now peloton's best bet has been what they are doing, it is starting to reopen. rather than cut it and start to focus on who that strong loyal really impressive base actually is. emily: right. no question there certainly is a big loyal user base but how many new users is peloton really going to add at this point. , and a new owner will not change the problem that this fitness market is a smaller market than some folks thought when we were in the middle of a pandemic. how will a new or a bigger company address some of these challenges? >> you said it. a big base. it is actually not that big, relative to us started, 2.7 million users -- it's exactly your point. peloton dropped the price of their bikes and did not see a surgeon to man. -- a surge in demand. covid was a pool for demand and not an expansion. at the end of the day peloton is a fantastic company for a niche group of people and that -- has grown bigger and grown faster, etc., but it

. >>> plus, should peloton be peddling a sale? who makes sense as a possible buyer. we'll discuss. >>> bitcoin up 35% since sitting low 35k in late january. we'll answer a key crypto tax question this hour with bitcoin back above 43k, dee. >> we start with a stock rocketing higher today that of course is peloton, up 21%, just this morning, which given the company's downhill turn just takes it back to where it was trading, oh, two weeks ago multiple poll reports say amazon is floating an acquisition and nike bidding as well and one asking if apple is natural buyer. it raises new issues for tech investors in big tech should the biggest companies be acquiring growth especially given the huge draw downs we have seen in valuation. microsoft lost out on tiktok but certainly been ann acquirer more recently is that why we're seeing $10 billion of metaverse investment? peloton's market cap, guys, near $10 billion and that's close to what am von is spending on mgm we know amazon is all about the prime fly wheel. the question is does it want or need a peloton to make that prime

i love peloton. i'm a user. we are seeing faltering demand i think right now peloton's best bet has been what they are doing, it is starting to reopen. rather than cut it and start to focus on who that strong loyal really impressive base actually is. emily: right. no question there certainly is a big loyal user base but how many new users is peloton really going to add at this point. , and a new owner will not change the problem that this fitness market is a smaller market than some folks thought when we were in the middle of a pandemic. how will a new or a bigger company address some of these challenges? >> you said it. a big base. it is actually not that big, relative to us started, 2.7 million users -- it's exactly your point. peloton dropped the price of their bikes and did not see a surgeon to man. -- a surge in demand. covid was a pool for demand and not an expansion. at the end of the day peloton is a fantastic company for a niche group of people and that -- has grown bigger and grown faster, etc., but it

one arm and nvidia the other is peloton's share price falling apart over the trend. though look at the turnaround today. we'll start with leadership change former spotify/netflix ceo mccarthy is replacing foley as ceo. foley will be executive chair. shares initially plunged nearly 10%. but quite the rebound. they're now up more than 20% this all comes as activist investor blackwells has been calling for foley's investor and a sale of the company. kno foley out as ceo 2,800 job cuts, 28% of the corporate workforce. the move is expected to save $800 million in annual costs, while peloton will also wind down a plant in ohio as part of the announcement, we got a look at guidance not great here full year 2022 revenue is projected at $3.7 billion to $3.8 billion, down from $4.4 billion to $4.8 billion. for q3, get ready for a bigger than expected loss, as well. i'm trying to figure out, this massive turnaround in the stock price, why is it up? it seems unlikely now that peloton is going to be selling itself to an amazon or nike or another company. at the valued like a tech

what is peloton? is peloton a luxury item? a luxury product or is it a mass market product because amazon doesn't do luxury. it does mass market. peloton needs to decide what it is. then there is the con tent side of it. if sales of the bike respect going to grow, how do they adjust to the higher margin revenue for services? some of the hypothesis out there from the street is if you look at an existing leisure brand like nike that that might be a better marriage there because they pay their existing base of talent, combines it with the peloton platform and is able to expand beyond the hardware. matt: do you even have to wear shoes when you are riding one of these things? what are you going to be watching for tomorrow? earnings come out after the belt. what are you looking for in the earnings? >> looking for a sign, some hint, something on m&a. do you recognize they're going to say something, matt? i think it's the guidance, not just four year guidance. it is where do we go from here? foley was frank in his restructuring assess

. >>> and peloton shares surge in frankfort as trouble ensues for the giant. >>> taking a look at a mixed picture on monday morning. for the europe markets stoxx 600 down .40%. it is resilient with the roller coaster january. you see you have almost as much in the red as the green. top stocks we will come back to see. let's look at the index is looking. the ftse 100 is up again just in lockstep with the stoxx. cac and germany. you might have heard that. under the flat line. ibex is down italy had a lot of interesting moves. politically and interestingly, nothing really changed in terms of yields, those are rising we promise to give you a look at the sectors. this is what i want to point out. leading resources. this is based on aluminum prices which shot up in china by 3% this also boiling down to ukraine and russia relations analysts saying china could look to russia to buy aluminum. that is sending shares higher. basic resources and retail picking up you see real estate falling. uk home prices, we will come back to as a story in the show, down .1% oil prices are a bit sluggish and headin

what did peloton do wrong and how can the company get back on the path? with me now, had found manager and fox news contribute a, jonathan is back. you've been following this, did they think the pandemic go on forever? >> no, i think bob dillon, a noted stock investor probably said it best, other times, they are changing. work from home, peloton went that way, work from home stocks in the midst of the pandemic were soaring but the last year peloton has gone from $150 a share to $38 a share, probably the best example the pandemic is coming to an end. such a change. during the pandemic was peloton, grub hub, zoom the stocks soared for the last year average work from home. is down about 68% of the market is coming us what a lot of has known, the pandemic affect is over. kennedy: fair obviously not going to build as many bikes and treadmills but they are relying on their description service trying to at more members so keeping the instructors, i didn't realize that highest peloton instructors get half a million in year in salary not to mention endorsement dea

some news on peloton breaking this morning peloton's ceo john foley is stepping down to become executive chair. the company plans to cut costs and overhaul the board the company hired barry mccarthy he served as cfo of netflix before spotify where he pioneered the direct listing route that spotify used to go public mccarthy will join the board peloton will cut 2,800 jobs. that is 20%. it will not cut the instructor roster it is dropping plans for a new factory in in ohio we will get reaction to this news we have talked about this for the past several weeks as we see the down draft on the shares dan ives jumping in this morning. research analyst at wedbush securities interesting move, but does it change the game? >> i think it clears the deck. fully this is the biggest impediment given the majority on the b shares i think really viewed by the street as one of the impediments to the potential sale. with him gone and a black eye to end his chapter, there will be more and more pressure for the company to sell, especially with foley gone he was the pioneer, the dna of the rise and fall. >> da

he's replacing peloton's co-founder john foley. >> peloton was one of the hottest home stocks of 2020. >> reporter: when sales surged early in the pandemic peloton reached a value of almost $50 billion, but the fitness company has struggled to maintain its momentum. it's down 75% from its peak last year. why has the past year been so tumultuous for peloton? >> everyone was rushing to buy a bike or treadmill because they could no longer access the gym with pandemic related restrictions so that growth wasn't going to last forever. >> reporter: and also taken a hit when television shows depicted riders suffering a heart attack when riding their bikes. that includes cutting 2,800 employees and abandoning plans for the company's first factory. but among the sweeping changes, a glimmer of hope. peloton stock up 25% today even as experts say the transfer of buyout from a company like amazon or nike is waning. >> i think today you're seeing the company really lay the groundwork for its own turn around plan. peloton members can breathe easy tonight. the company says there will be no changes to

everybody was talking about peloton. stay at home play at home work from home stock soared it is now under $30. that's including a 20% pop yesterday on news the company may be sold. it is down a touch in the pre-market john foley is out as ceo a lot of hedge fund pressure on that stock. >>> when we come back, more on peloton and some of the morning's big money movers including cathie wood. unloading one stock as they prepare to release earnings. >>> and peter thiel is taking his talents elsewhere. >>> and trouble for tesla and ceo elon musk. he may have an s.ctaetn .e. rg o his back we'll tell you why stick around ? cvs can help you support your nutrition, sleep, immune system, energy ...even skin. so healthier can look a lot like...you. cvs. healthier happens together. what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry

what companies are seriously looking at buying peloton? >> thanks, brian absolutely the sharks are circling because they sniff blood in the water when it comes to peloton you look at peloton's market cap and just how it is collapsed over the past year i think that is the reason that we're really having this conversation today of course, reports like you said, really as of late friday, have trickled out that amazon and nike could be two potential sui suitors for the business in part, this isn't a huge surprise activist group came out about a week ago and issued a letter to the peloton board calling for the company to consider a sale and blackwell capital in the note named nike and google and disney and sony as potential acquisition targets for peloton. again, look at peloton's market cap as of friday which was $8 billion. a year ago, we were talking $50 billion. again, just to see how that has fallen over the course of the year as you mentioned, just here recently, we have seen more bad news trickle out for the company. they report earnings

tom: let's get to peloton. kriti gupta has more. >> we are looking at it from its debut going back to september of 2019. the chart looks pretty similar to other pandemic stocks. zoom, netflix, they had that same shape, essentially a round-trip, for the radio audience. peloton is now back to levels where it was back at its ipo two years ago. not only is peloton having its own issues in terms of keeping and growing its subscriber base but it's stock has been a round-trip. tom: thank you very much. a little bit of visualization. much more after the close. we like to take great pride in saying, ok, sell side, who got it right? simeon siegel is a senior analyst at bmo capital markets. in april during the first pandemic, he stuck his head out and said it would not work. maybe he said underperform. what did you see in april 2020 as you were using the peloton? simeon: i was definitely on the seat. we watched a product that people loved, extrapolated to go further. the question for us was, was the pandemic going to be a

. >>> shakeup at peloton >> peloton has seen an incredible swing lower since it became the stay-at-home play of the pandemic. >> the ceo out nearly 3,000 jobs gone can the company get back on track? >>> retired pope benedict asking for forgiveness over the church's sex abuse scandal what he acknowledges and what he does not. >>> olympic speed skating sparks controversy in beijing. >>> the army's just-released battle plan to survive climate change >>> and the booming business of butter runs into a problem >> announcer: live from cnbc, the facts, the truth, the news with shepard smith >>> good evening a judge is set to decide whether there's enough evidence to send a suspected school shooter's parents to trial this has the makings of a ground-breaking american case because never before have parents faced involuntary manslaughter charges for their teen's actions in a school shooting james and jennifer crumbley say they are not responsible for what their teenage son did here they are in the courtroom today in handcuffs and prison uniforms their son is accused of killing four students at his

peloton. could it be on the right track is this the end of the fabled beat and daze period and tonight's lightning round. so stay with cramer. alright, so...cordless headphones, you can watch movies through your phone? and y'all got electric cars? yeah. the future is crunk! (laughs) anything else you wanna know? is the hype too much? am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league! (jane) we really expanded our family... for the wireless savings. then, my sister told me about visible. (sister) get unlimited data for as low as $25 a month. no family needed. (vo) visible. switch and get two months of wireless for $22. snmpl in this miserable, horrible market, is it time to circle back? peloton acted. as the world reopened, people started to go to gyms again. it went from let's say a peloton shortage to a peloton glut everything came to a head a few weeks ago with we learned the company was halting production because

at the end of the day, does this benefit peloton? that the news is out there if they come out tomorrow, is this brought on by them, by the bidders? it does beg the question of who stands to benefit from the news being out there. i don't know that peloton stands to benefit that's the first part, which is interesting. vis-a-vis the amazon point, which is a great point, there's $1.3 billion of inventory sitting on the books as of last quarter. right now, the issue in the past was manufacturing and getting the amount of supply right now, there's a lot of inventory out there that hasn't moved. it hasn't moved with price cuts. i don't know that the idea, i think the idea we're seeing the question of peloton, did covid expand the audience or pull it forward? the numbers are arguing it pulled it forward. if amazon enters the picture, what do they offer there if you think about it, and i haven't done this survey, i don't know this answer, but if you think about it, how many peloton users are not already prime subscribers. at the end of the da

shares of peloton are soaring today. the company is said to be exploring takeover options and there were reports that amazon and nike are considering making offers. peloton stock has fallen more than 80% from the high your ago. -- from the high a year ago. guy: we take a look -- a deeper look at peloton. shares were down so we would be talking about potential takeovers. amazon has been talk to out and apple. how credible is this idea we could see a takeover? >> when we look at pellet timeshare structure, peloton doesn't want to be sold so it might not happen. they have about 66% ownership. it looks like fitness apparel or companies that want to have the premium fitness experience could be a better fit. maybe one of the tech players could be a good fit but we will have to see how that plays out . lisa: there is a certain degree of regulatory scrutiny. how much would that be an issue if someone wanted to do an acquisition? >> since peloton's market cap has declined significantly since the highs of the pandemic, the tech pl

cram has the morning off disney, uber, peloton, coke. m & a. cpi is on deck thursday. >>> frontier buying spirit. >> and spotify shares lower ahead of the open. crow daniel ek damning joe rogan's use of racial slurs. >>> last week, mike, as you pointed out on squawk this morning. and bebds in the road from point to point, as you said. >> yeah. it was just -- there was pockets all over the place the individual market was more than 1% range each day the s&p 500 last week, i mean, part maybe is more complicated than what we're seeing in terms of this cyclical shift from very fast growth to something lower obviously fed tightening and the move in global bond yields everyone is now kind of talking about the shape of the charts of european bond yields cracking above zero pretty decisively and the u.s. two-year note after the jobs number on friday, that docked 134 the 10-year was at that level two months ago so that's how quickly the bond markets reprice for several rate hikes. and, you know, we can talk about is that too many is it not enough is the

it comes after peloton slashed its revenue outlook for fiscal 2022. they now expect to make about $1 billion less than they thought and it comes weeks after we learn peloton is hitting pause on producing bikes as they try to cut costs. so what are you hearing from inside the company and what does it mean for riders? >> sure. thank you for having me. i think the important thing to know here, especially if you have a peloton bike or treadmill, you shouldn't really notice any difference with the product, with the experience. again, if you are an existing customer. as you mentioned, peloton announced yesterday, it plans to lay off about 2,800 people within its workforce. that is not going to impact its instructors or people that help create content. so, again, if you're a current peloton user, you should not really expect that experience that you love and enjoy to be impacted at all. and that's really important, right? because i think at the core of the brand and what's really helped peloton build such a massive base of loyal riders is the affinity that t

peloton has fallen 80% from its peak a year ago. look at the share price chart over two years, it represents an inverted v. nike has the nike training club app. for all companies, it is a way to bring the subscribers peloton has onto their own platform as a vehicle for their other products. we will see how peloton acts later in the premarket. analysts will be listening carefully to the earnings call after market tomorrow whether we have a hint. tom: laura wright breaking down the peloton story. coming up, italy's biggest think plants to return money to shareholders. this is bloomberg. ♪. this is bloomberg. ♪ francine: welcome back to the open. 30 minutes into the trading day. ecb knot -- bumper u.s. job numbers fuel hike expectations. strengthening europe's eastern flank. we will speak exclusively to the head of italy's largest bank. the conversation with carla mussina in a few minutes. his views on the new business plan and the outlook for the european banking sector. when you look at the markets, there is a widening of spreads

and so me there's the opportunity for peloton. even beyond being a subscription-based business model, it has a strong brand ahead of itself, even though it collapsed to a 12 billion brand value. but the franchise is enormous. and i think any suitor like an amazon or nike sees that opportunity for the franchise that they built. they are a true brand. and they've done it rapidly. >> you're right. >> i think it's -- >> i was going to say you're right in the sort of devotion of the users. our own krusers -- producers, our fans are fansof the product. i don't understand how they capitalize on it when the bikes are still expensive and the monthly subscription is expensive. i've thought about getting one, but i don't want to get locked into another subscription product for a long time. how do they capitalize on that while growing the community? >> well, they brought in lower price models their delivering that strategy to bring in more competitive offerings. they'll keep looking at those opportunities. i'm not saying dump what they've got

we did see a lot of options in peloton. it was above average today, nearly 100,000 calls traded, and obviously this is good news for peloton shareholders but another reason to avoid amazon >> mike is not in a pro-amazon mood tonight to put it politely. carter, how does the peloton chart look >> i mean, let's stay with the things a little bit funny. i can picture my grandmother on her exercise bike, and listen, there's nothing new here that's it. >> all right well-said. all right, for everything options action check out our website, sign-up for our newsletter here's what's coming up next >>> still to come, bear trades part 2 we'll look at a couple of commodities on contradictory courses. then we'll stop with the alliterations, promise >>> plus calling all options actions fans reach into your pocket, grab your phone and tweet us your question at options action if it's nice, we'll answer it on-air when "options action" returns. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. w

peloton up 21% at 29.96, this stock was at 32 at the open okay so it's not as high as it was, but they are still in play because where there's one suiter there may be more. the financial times reporting nike is evaluating an offer while wedbush dan ives is bull ish on the prospect of apple entering the fray, he believes they are already sniffing around we've got nike up one-third of a percent, amazon better by one and one-third percent apple up about .2% but peloton shares are down 84% over the past year, and ives believes the price tag could be as low as $12 billion. bargain basement folks. there are no confirmations from any of the potential bidders but at the moment peloton seeing a double-digit percentage gain. and forget dating. in its first acquisition ever, bumble is outright marrying european dating app fruits. deal terms not disclosed. we got bumble up about 1%, but while bumble is seeing a gain here, at $27.87, that's trading way below $76 which is where it opened the day it ipo'd . but look the point is at 30,000 feet we have to ask what is spacing all of the m & a action an

"america reports." >> peloton is not insulted at all. fox news alert, two largest border crossings between the u.s. and canada have been blocked by truckers in the freedom convoy protest. >> sandra: concern is growing here at home, about the impact it could have on what's been an already sluggish supply chain. more on that in just a moment. >> john: to start us off this wednesday, another blue state rolling back mask mandates but not for schools. c.d.c. makes no change at all.

that's peloton this quarter peloton a lot less important than it used to be seen a major slowdown as peloton, comes to sales and subscriptions. that really needs to be a bigger deal than it is now. meanwhile, fast-forward. amazon and shopify now appearing to pick up slack lenders have been slowly shaking off relying on peloton a big thing to watch what percentage of revenue came from peloton especially as that company sees a slowdown lately. and affirm, went puckly, context, peloton one-third of revenue but falling. talked about moving away from it prior quarter, 10% revenue shopify the big story last quarter and helped them grow to more than 100,000 merchants. propelling that company to the sort of level of 15,000. competition fear it square, block bought after pay. a lot of big global buy now, pay later. amazon, of course, the huge focus for today. that exclusive partnership went into effect in november. first quarter we'll see it play out and how significant this is. holiday shopping season tends to be for payment companies as well analysts say amazon will take over biggest slice

the forecast was weaker than expected what a journey it has been for peloton. diana olick take ass a look at company today versus its pandemic peak. >> yeah, kelly, peloton has seen an incredible swing lower since it became the stay at home play of the pandemic. take a look at the stock hitting a peak of $167 a share in mid january 2021 after rising steadily from the onset of covid. now, down about 77% from that peak today, of course, as you said, it's battling back on the news but the drop coinciding with lower forecasts from peloton last fall due to falling demand as the economy reopen and people started hitting the gym again. connected fitness subscriptions which hit pandemic peak growth of over 25%. growth is now forecast at just 2.4% of q4 for this year and gross margin is where it gets ugly has since then essentially been cut in half. down about 23 percentage points and you see the forecast for the next quarter is even lower and the guidance on that has just been way off finally, marketing spend is another space to watch it basically doubled year-over-yea

we did see a lot of options in peloton. it was above average today, nearly 100,000 calls traded, and obviously this is good news for peloton shareholders but another reason to avoid amazon >> mike is not in a pro-amazon mood tonight to put it politely. carter, how does the peloton chart look >> i mean, let's stay with the things a little bit funny. i can picture my grandmother on her exercise bike, and listen, there's nothing new here that's it. >> all right well-said. all right, for everything options action check out our website, sign-up for our newsletter here's what's coming up next >>> still to come, bear trades part 2 we'll look at a couple of commodities on contradictory courses. then we'll stop with the alliterations, promise >>> plus calling all options actions fans reach into your pocket, grab your phone and tweet us your question at options action if it's nice we'll answer it on-air when "options action" returns. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. wi

>> daddy pig gets a peloton. >> all right, daddy pig, time to try your new peloton bike! >> but isn't that the thing on tv giving people heart attacks? >> what could go wrong?

could acquire peloton. in my opinion, not so fast. when apple buys companies, it is to develop new features. take authentic in 2012 and how it enabled touch id, or siri before that. peloton would not fit the bill, but would give apple the ability to jump into the physical exercise equipment market. it is unlikely, given bikes are low-margin, expensive to make and very expensive to ship. i think we can rule out apple buying telethon for hardware. what about software? telethon has developed fitness applications for its own software and third party devices. i don't think apple needs anymore fitness software expertise. next, content. peloton has fitness classes. it blows apple's fitness pods out of the water. but it would be cheaper for apple to invest further than gobble up all of peloton. with all of that said, peloton would still make sense in terms of underlying tech, patents and key employees. but i think the company is too pricey. apple certainly needs to update its business portfolio. i don't think buyin

by all means, buy peloton. that would have knocked your net income down another 10% so instead of making 2.5 your net operating for the quarter would have been about 2.25 it seems like that's par for the course there look, we did see quite a lot of options in peloton it was above average today nearly 100,000 calls traded. this is good news for shareholders, but another reason to avoid amazon. >> mike is not in a pro-amazon mood tonight carter, how did the peloton chart look >> stay with the things that are funny. i can picture my grandmother on her exercise bike and listen, there's nothing new here that's it. >> well said for everything options action, check out our website, sign up for our newsletter here's what's up next. >> still to come, pair trades part two we'll look at a couple of commodities on contradictory courses. then we'll stop with the alliterations. promise. plus, calling all options action fans reach into your pocket grab your phone and tweet us your question at options action. if it's nice, we'

one stock that is not down, up for a second day, here's peloton. over the last days, aborting -- up 41% in the premarket after reporting a very disappointing quarter and organizational changes. right now, up about 12%. yesterday, up about 21%. largely has to do with the speculation that the company will be taken over by another company. investors long probably relieved about this because this is a new range in terms of revenue, down sharply from the prior forecasts and estimates. estimates of a much wider loss than expected, and subscribers down from what had been expected. the big story is the idea that perhaps the company, may be nike or amazon could acquire peloton. guy: was this enough to keep the activists happy? are we going to see other c-suite executives may be having to depart as well? thank you very much, indeed. let's turn to some of the data we have seen my really relevant to the u.s. economy and the trajectory we are on. inflation and labor shortages certainly weighing on the minds of small business owners in the united states. the lat

. >>> there's a shakeup at peloton, and a major league pitcher escapes charges. those are some of the headlines on the "morning newsstand." the "los angeles times" reports dodgers pitcher trevor bauer will not face criminal charges following a sexual assault allegation. prosecutors say there is insufficient evidence to prove beyond a reasonable doubt that bauer committed a crime. a san diego woman accused him of hitting and choking her on two occasions during sexual encounters. he denies abusing the woman. bauer was placed on paid leave last july and still faces possible suspension by major league baseball. >>> the "associated press" says the peloton co-founder is withitompanyn after a rough ride he's giving up his position as ceo to become executive chair of peloton interactive. the company also announced that it is cutting almost 3,000 jobs. peloton's stock price surged more than 400% in 2020 when people were forced to exercise at home amid the covid lockdown. but nearly all of the gains were wiped out last year when they returned to the gym. >> they got to exp

. >> we've got a news alert here on peloton shares are rocketing in the afterhours session now up more than 20% seema? >> hey, melissa. here's the story dow jones is reporting that peloton has drawn interest from potential suitors including amazon and that the company, amazon, is speaking to advisers about a potential deal for peloton in addition to that, dow jones is reporting that peloton is facing pressure from activist investor to replace its ceo. that does follow a report from "the wall street journal" that touch on this very fact. you can see it's spiking here. rebound rebounding we reached out to the company. more to come >> thanks. up 26% right now i got to say, kind of makes sense. you can use the prime videos as a distribution platform for the software, which it's trying to become software company you can use the delivery network to deliver the hardware. the bikes and stuff. >> i mean, it makes a ton of sense. my question is what isn't amazon going to be involved in? i'm not willing to bet against them being able to make it work. they've done it too many times >> pete, imagin

will peloton soon be up for sale and who is interested in buying it? we assess the runners and riders as its boss steps down and it slashes thousands ofjobs. inflation remains a huge concern among many americans, but those soaring prices are spurring people to buy less and share more. and the business of the oscars — the nominations for this year's statuetes are in. we find out how the movie business has changed thanks to covid—19. japanese car maker toyota has posted a 21% fall in third—quarter operating profit to 781“; billion yen — that's $6.80 billion as chip shortages crimped vehicle output. that was slightly better than analysts had expected. the world's best—selling carmaker also lowered its production target for the year to march 31 to 8.5 million vehicles from 9 million. joining me now is or asia nusiness correspondent mariko oi. we now have the numbers, talk us through them. figs we now have the numbers, talk us through them.— us through them. as you said, some of the — us through them. as you said, some of the numbers - us t

peloton. in my opinion, not so fast. when apple buys companies, it is to develop new features. take authentic in 2012 and how it enabled touch id, or siri before that. peloton would not fit the bill, but would give apple the ability to jump into the physical equipment market. it is unlikely, given bikes are low-margin, expensive to make him an expensive to ship. i think we can rule out apple buying telethon for hardware. what about software? telethon has developed fitness applications for its own software and third party devices. i don't think apple needs anymore fitness software expertise. content. peloton has fitness classes. it blows apple's fitness pods out of the water. but apple should invest more in what they have instead of peloton. but peloton would still make sense in terms of underlying tech, patents and key employees. but i think the company is too pricey. apple certainly needs to update its business portfolio. i don't think buying peloton is the answer, at least for now. i'm mark

peloton talk about it. they talked about whether their tam has changed, in light of the return to work, people going back to gyms no, the tam hasn't changed, and now it's kind of essentially back on track to what we initially anticipated the tam to be all along. >> by the way, a lot of the street is talking less about an eventual sale and more about different decisions, but the side and scope of the moves are favorable and consistent so they see it more as a continuation >> clearly the market seems to be appreciative of it, that it's not on earnings. the earnings were not positive, it was a miss there, but the stock is up 12% after being lower. i think they are initially disappointed, but now clearly after the call, they feel better about the recent shake-up and the news moving forward. >> i guess there's a hope in a few years they'll generate, but this is not on takeover prospects. this is prospects from mccarthy and to your point, the new plan. >> i think so. they did say also on the call they have no int

the typical peloton customer. if you look at the market trading at 3-time sales compared to competitors. it is a cheap company, if the report is strong i recommend it is in play, strategic move for peloton. it will not do anything for the next humans but cut costs. stuart: you are on that side of the fence. you suspect they will recover by themselves. >> i don't think they will recover. i don't think anyone buys them. they need to find more products to sell 6 million subscribers. the low hanging fruit of selling exercise bikes to rich people has done. there is heavy competition but you can sell them other products. a medically big company, blue apron could be with them. stuart: you have a target price, $40 a share. only time will tell. andrew left, see you soon. lauren, movers. disney report today. lauren: it is all about theme parks and streaming. can they hit record profitability? how much has growth slowed down? we expect to see 125 million subscribers. stuart: yum brands, do they report today? lauren: they rep

the lender is slowly shaking off its reliance on peloton when affirm went public last year, peloton accounted for about a third of revenue at the time, that was really a good thing it sold a lot of bikes and subscriptions during the pandemic, but as we know, sales have slowed significantly. as of the third quarter, peloton only made up about 10% of revenue for affirm that's coming down shopify, meanwhile, really has stepped up for affirm in a big way to help affirm grow to more than 100,000 merchants last year the big story today when we get those numbers after the bell, how much will amazon add to that picture? affirm's exclusive partnership with e-commerce giant ticked off around the holiday shopping season last year in surveyed some users who also shop on amazon hof those more than half say they reported already having checked out using affirm analyst dan is among those predicting amazon will unseat peloton affirm's biggest driver of sales and raised gmz and price target as a result affirm still not the biggest buy now pay later provider globally. by no means. the swedish competitor in tha

. -- peloton. he will be replaced by the former cfo of spotify and netflix. 2800 employees out, including some top hardware executives. >> this is just -- in terms of how they meet aggressively at costs. i think the stock market reaction is partially coming back. also, ellison b aggressive enough to ensure they can be a sustainable and profitable business. >> this was him just about a year ago talking about his vision. take a quick listen. >> we are investing in digital fitness as well and on and on you are seeing some of the big players trying to create these connected products. everyone in the industry is seeing the future of fitness is at home. >> part of the this might be at home. where do you think they went wrong? >> demand forecasting is a problem. this is something that is very expensive. just because you are saving money on the outside. this is the import -- the purpose that is more about what the -- now, the consumer behavior in the pandemic is swinging all the way away right now. we will

big changes on the way at peloton. the co-founder john foley is stepping down as ceo, will become executive chair. he will be replaced by barry mccarthy. that moves are seen as a victory by investors. they also said about 2800 jobs will be cut. president biden and the company ceo will make the announcement today. the plant will be located east of nashville. it will make as many as 30,000 electric chargers a year. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ >> i am frankly deeply skeptical that the russians are truly going to pull the trigger on an invasion. part of the reason for that is, frankly, what we have seen in the last few weeks has been the strongest display of u.s.-led multilateral coordination that the world has seen to after 9/11. jonathan: ian bremmer of the eurasia group on the prospect of an invasion into ukraine, and invasion the russians continue to deny. futures unchanged on the s&p. on

>> daddy pig gets a peloton. >> all right, daddy pig, time to try your new peloton bike! >> but isn't that the thing on tv giving people heart attacks? >> what could go wrong? i'm literally made of the thing cardiologists tell you not to eat. this exercise bicycle will get me out of my rut in no time. >> or me out of this failed marriage. >> what's that? >> i said, um, pretend you are pulling a carriage. >> ah, yes, visualization. great suggestion. ( panting ) >> why is daddy pig breathing so hard? >> because mommy pig recently spotted daddy pig's car parked over at madam gazelle's house. runting ) >> the peloton killed daddy! >> nonsense! i poisoned his coffee! >> peleton. it wasn't the bike this time. ( theme song plays ) tonight: stephen welcomes kristen stewart and jonathan van ness. featuring jon batiste and stay human. and, now, liiive on tape from the ed sullivan theater in new york city, it's stephen colbert! ( cheers and applause ) ( theme song playing ) ( audience chanting stephen ) thank you.: hello!en please, have a seat, everybody. thank you so much! welcome.

so, essentially, what happened is peloton did hold this all hands meeting yesterday. that was the day after they reported quarterfinal results and this is a typical thing for the company to do these meetings the day after those results come out. this event, obviously, you know, was more highly anticipated as others have been as peloton was introducing its new ceo barry mccarthy to the entire employee base now, i learned that there were some laid off employees that were able to gain access to that meeting. it's not exactly clear how that ultimately happened. but again you could see in this chat section just some angry comments beginning to circulate about, you know, just how these people feel about the company. as you can imagine, employees that were just laid off might have some bitter feelings towards peloton. now, to be fair, you did see some comments coming through of people really optimistic and supportive of barry mccarthy, incoming ceo, and what he can do to, hopefully, right the ship at peloton. a day earlier i also obtained an email that barry mccarthy sent to

that's what's happening with peloton. it seemed like the perfect solution when everyone was stuck at home. at the height of the pandemic in 2020, the fall, they dropped the price of the bike from 2250 to $1900 and in the latest quarter peloton doubled spending on sales and marketing and on rnd here's why it's really not salvableage. peloton has become a classical hardware logistics nightmare its warehousing and shipping process is too inefficient meanwhile sales are slowing and it's been dropping prices. to fix all that it should take the painful step of trying to retool for more efficient manufacturing and delivery higher margins instead it's launching new products to boost revenue. >> at the same time they're laying off 2,800 employees and the question is is that enough >> well, andrew, here's the tough thing i remember 20 years ago there were so many of these like device companies, palm, apple, et cetera who were trying to launch product and they kept running into this similar hardware logistics nightmare where if you

remember how quick that peloton ad featuring mr. big was up and running? we will talk to the team behind it and many other ads. ryan reynolds joins us next to talk about super bowl ads and more. ♪ emily: bitcoin is back on a three-day winning streak, close to the $45,000 mark. here to discuss the price move, what are we seeing? >> we really see bitcoin the last couple of days since the super bowl really start to rise back up again. the first few days, the rise was small. the last 24 hours to 48 hours. a little bit bigger. a 4% rise in bitcoin prices alone. an even bigger jump when you look at prices of ethereum, which is close to a 7% rise. bitcoin volumes were higher. and for those that thought bitcoin was a diversifier, he saw them really mimic the stock market in a bigger way. risk appetite really rising as geopolitical tensions start easing. emily: i want to go back to the crypto bowl for just a moment. i talked about all that and more with mark douglas. and actor and chief creative officer, ryan reynolds. i asked them what worked and what didn't wor

peloton hoping its stock can climb back up the leaderboard. and the top senator banning the idea of congress trading stocks, lumber, gas, and guacamole and why one economy is not slowing down and showing any signs of inflation soon. >>> and how athletes are cashing in on the nft craze and what former cowboys receiver december bryant has to say about his new platform it's wednesday, february 9th this is "worldwide exchange. >>> good morninging, good afternoon, good evening as always from wherever in the world you may be watching. i'm brian sullivan it's a big wednesday and cool. we'll have dez bryant later on the show. >>> we're looking at your stocks they're looking good the dow futures are up 179 the nasdaq actually up things go like that and the futures turn the same way, so some nice gains on the screen right now, this after a more than 1% gain for the dow yesterday. now, just keep it between us, all right? but the dow is now only down just over 2% for the year and actually just about 4% away from its all-time high. the index is down four t

some big changes afoot at peloton. the company will be cutting 2,800 jobs replacing embattled ceo and overhauling the board after recent slow downs in the market. we'll bring in christine romans following these latest development. i wonder what you think about this because of course peloton boomed during the pandemic and we're sort of moving along. >> yeah. it really was a pandemic winner, now looking at the next mile for this company that's been public for just a couple of years. you know, during the pandemic a lot of the peloton watchers in the market said it was starting to invest and behave as if the pandemic was going to last forever. and of course, it isn't. people are starting to go back to their gyms and some of the need and the fad of getting the peloton has worn off. it does still have a very big loyal customer base and that is why this is not really an existential crisis for peloton but a restructuring is what you're going to see. the co-founder john foley will be the executive leader of the board and bringi

coming up, peloton reportedly has a number of suitors. predicting who's next is tough, but the chatter is drawing attention to a specific group of stocks those would be beaten-down stocks with subscription revenue models >>> and buy the dip in tech? not yet says a veteran tech investor he'll tell us the two things he says have to happen before he jumps in >>> and stocks that pay you back as rates rise, a market probe looking to dividend growers, just talking about it, with tight pricing power to boost your portfolio we'll name names later this hour >> he will name names. hi, every. stocks are searching for direction this afternoon the dow is up 106, the s&p up 5 and the nasdaq up 9 but the nasdaq has given up 130 today. spirit's merger would be the fifth large et cetera company in the country. spirit is up 17% today, oop oom frontier up almost 4%. shares of tyson are hitting a 52-week high, a strong quarter on higher prices, the flipside, and strong demand, 11.5% gain. always wonderful to have you with us. >> thank you >> cpi is the numbe

does peloton even want to sell? the ceo holds more than 50% of shares and may want to rescue list baby instead. shares are worth between4 34 and $36 each. the stock traded as high as 155 december of 2020. it is described as one-time fitness darling. demand pulled up in a big way because of lockdown. this would be a risk for any potential souter here for long term potential. 2 million connected subscribers working out about 16 times a month but that number is falling as the world reopens and competition grows. we'll find out tomorrow. david: it is interesting, a lot of people in my building, i live in an apartment building in new york city. a lot of people got kind of accustomed to working out at home walking to the gym as we say here in new york. stuart: lauren: that doesn't grow the base. david: what a fall. we have carol roth and capitalist pig hedge fund manager jonathan hoenig. jonathan, the fall, put it in dollar terms. they were worth $55 billion in market cap about a year ago. they're now worth about nine bil

peloton rising 25%. actually, 50% over two days. the ceo and founder capitulated to the demands of the activist investor and will be replaced by an executive experience with leadership roles and netflix as well as spotify. for the fiscal full-year forecast, they came in below estimates. connected subscribers will be around 3 million. for lyft, we learned that covid is still a headwind. they came in below the forecast but interestingly, lifting's revenue reached an all-time record in the fourth quarter at $51. for disney, it's all about disney plus. the streaming service. analysts are concerned following what we saw from netflix because it turns out that adding more subscribers is expensive. can disney bring up the goods to keep us all interested in content? manus: i am solidly behind netflix at the moment. tinder swindler. laura, thank you very much. coming up, we have the president and the ceo of the company. waiting t dani: good morning from bloomberg's european headquarters. i'm dani burger alongside manus cranny, who is live fro