Why Peloton stock exploded today

stock peloton (PTON 13.94%) The connected fitness platform guru was up 9% as of 12:30 PM ET on Thursday after announcing an exclusive new content partnership with social media platform TikTok.

Why Peloton is joining forces with TikTok

More specifically, Peloton and TikTok are launching a new dedicated co-branded fitness hub on the China-based social media platform titled “#TikTokFitness Powered by Peloton.” The hub will feature custom Peloton content including curated live classes, original instructor series, creator partnerships, celebrity collaborations, and more.

Peloton previously announced an apparel partnership with: lululemon Last September, we signed a contract to sell our products. Amazon But this is the first time Peloton is creating custom social content for partners outside of Peloton-owned channels. With over 1 billion active users worldwide, it’s easy to see why they chose to partner with Peloton, the leader in short-form mobile video.

What’s next for Peloton stock?

Peloton shares are up nearly 30% since the beginning of November 2023, driven by strong year-end performance in the broader market. But the company’s stock is still down about 65% from its 52-week high set in February due to widening losses and a declining subscriber base. We are also executing an ongoing transition from hardware to digital subscriptions.

While Peloton has taken an important step in the right direction with this change, it remains to be seen whether partnerships like this can move the needle, driving significant revenue growth and reducing the company’s losses. Until we see more substantive evidence on this, investors should tread lightly when considering Peloton as a potential portfolio candidate.