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The new idea is to venture into the video gaming business to help Peloton diversify into more revenue returning avenues amid Covid-19 market recovery.
Peloton Interactive Inc (NASDAQ: PTON) stock closed Monday trading at $118.43, up 7.14%. Additionally, PTON stock had added approximately 0.31% during the extended trading session. The jump was attributed to news that the interactive fitness platform is gearing up to venture into the video gaming business.
According to media outlet CNBC, the Peloton in-app game will be called Lanebreak, but the name is subject to change. According to the company, Lanebreak is simply “a music-based experience … to get the highest score possible.”
The idea is to venture into the video gaming business to help the company diversify into more revenue returning avenues amid Covid-19 market recovery. Notably, the company experienced a huge boost last year when Covid was announced a global pandemic. Furthermore, more people needed a way to stay fit while observing the set social distancing protocols.
Peloton Stock and Market Outlook
According to market analytics provided by MarketWatch, PTON stock has added approximately 83% in the past year through Monday. However, during the past seven months, PTON stock has dropped approximately 21.94%.
The negative performance year-to-date can be attributed to more coronavirus vaccines being approved for mass use in different parts of the world.
As of July 19, 2021, Peloton had a reported market valuation of approximately $32.97 billion, and 254.87 million outstanding shares. With such a rich balance sheet, the company is capable of investing in other products, thus the Lanebreak in-app video game.
The Lanebreak video game will only be available to Peloton bike owners and subscribers. Reportedly, the game involves ‘riders changing their cadence and resistance to meet various goals and control an on-screen rolling wheel’ according to The Verge. Additionally, Peloton Lanebreak users can choose the type of music to listen to, the duration of the track, and adjust the difficulty level. Consequently, Peloton bike owners can have more interactive options as they take to their regular exercises.
Notably, Peloton noted that the members-only beta version will be made available later this year. However, the company anticipates officially launching the application early next year.
The range of interactive features will be key in its bid to expand to the global market. Reportedly, Peloton is planning to venture into global markets including Australia. Additionally, the company is also said to venture into the wearable market, with a digital heart rate on the waitlist.
Market strategists are positive the company is capable of rallying further in the coming quarters based on the fundamental aspects. According to a survey conducted by MarketWatch, Peloton stock received an average of Over rating from 29 ratings.