Peloton Interactive co-founder and CEO John Foley told CNBC on Tuesday that he can’t understand the reasoning behind his company’s stock falling after releasing its first quarterly results since its September initial public offering.
“The stock going backwards is a bit of a head scratcher, I’ve got to be totally honest with you,” Foley said on “Squawk on the Street.”
Peloton shares opened down about 2.3% after being up 7% in premarket trading. The stock traded as much as 9.5% lower on the day. But it erased some of those losses as Foley was speaking on CNBC.
Peloton was around $23 per share in late morning trading, below its IPO price of $29.
The fitness company reported before-the-bell Tuesday that its fiscal first-quarter revenue more than doubled to $228 million from the year-ago period. It also said that net losses narrowed to $49.8 million from a shortfall of $54.5 million.
The company’s bikes and treadmills — with accompanying video screens to stream live and provide on-demand recorded classes — has earned loyalty among users who prefer to exercise at home instead of going to a studio. In the past year, Peloton doubled its connected fitness subscribers to more than 560,000 members with a paid subscription.
Peloton is putting much of its focus on international expansion, new products, digital, new content and opening more studios around the world, Foley told analysts in Tuesday’s earnings call.
But he stressed on CNBC that the investments “are all smart investments.”
“We’re thinking long term,” he added. “What happened today, what happens tomorrow, isn’t something we’re focused on.”
— Disclosure: CNBC parent Comcast-NBCUniversal is also an investor in Peloton.