David Einhorn speaking at the 2024 Sohn Conference in New York City on April 3, 2024.
Adam Jeffery | CNBC
Shares of The Peloton rose more than 11% on Wednesday after Greenlight Capital’s David Einhorn said the company’s shares were undervalued, CNBC said.
Einhorn made a pitch to investors while riding a Peloton bike, said a person familiar with his remarks. It’s not immediately clear what Einhorn believes Peloton’s shares should be trading at.
Over the summer, Greenlight Capital, a hedge fund founded by Einhorn in 1996, disclosed that it had a $6.8 million stake in the company as of June 30.
Peloton’s stock tends to be volatile and is up just over 1% so far this year, as of Tuesday’s close.
Einhorn’s comments come one day after the company announced it is partnering with Costco to sell its Bike+ in retail stores and online as it looks to reach younger, wealthier consumers with more discretionary income to buy expensive exercise equipment.
The company is currently led by two board members after CEO Barry McCarthy stepped down earlier this year. It is in the process of finding a new CEO and expects to announce its next chief this year.
When it reported earnings in August, Peloton signaled it was ready to focus more on profits over growth after completing a major financing that pushed up its debt maturity and bought it some time to affect the turnaround.
Peloton did not immediately respond to CNBC’s request for comment.
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