we're going to pick up this peloton coverage for scott peloton began trading as an open company.hares right now bouncing down about 8%. the ipo is priced at $29 per share. once again, the high end of its range. lst

this is the opposite of peloton.s the opposite of smile direct the bottom line, as long as the job market stays strong, companies will keep paying up to make their work spaces attractive and entice the workers they need. that's why i think herman miller and steelcase, as boring as they are, are both wto buying even after last week's explosive rallies; i bet kit go higher still. stick with cramer. this is the family who wanted to connect... and find inspiration in new places. leading them to discover: we're woven together by the moments we share. everything you need, all in one place. expedia. by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places. >>> should investors pump the hand brake on peloton or will this ipo have the wind at its back >> let's face it we

what happened with peloton? what you are seeing is a restructuring change in the way the ipo markets, and peloton is as good an example is any of the ipo's we have seen over the last six months. what we are seeing is a story about demand and access and how that has changed recently as a result of an active late stage private security market, which peloton's case 13 months earlier when you saw two of the biggest hedge funds in the world, two of the biggest mutual funds in the world, they bought peloton for $14.50 a share. million 13sed $500 months ago. as a result of that, 4 entities that were historically big buyers of ipo's -- not only have they already bought what they wanted to buy, they might even be sellers at this point. the ipo's, looking at peloton and walking back over the last six months, that's a new dynamic. taylor: what are your thoughts on valuation? >> the question of what is and is not a tech company gets more interesting by the day for me. i heard your interview with the ceo of peloton earlier,

peloton c.e.o.ompany races towards his. stay tuned you're watching "squawk box" on cnbc ♪ ♪ plants capture co2. what if other kinds of plants captured it too? if these industrial plants had technology that captured carbon like trees we could help lower emissions. carbon capture is important technology - and experts agree. that's why we're working on ways to improve it. so plants... can be a little more... like plants. ♪ you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. hour 36 in the stakeo

what happened today with peloton?ink what you are seeing is a restructuring change in the way the ipo market works, and peloton is as good an example is any of the ipo's we have seen over the last six months in that what we are seeing is a story about demand and access and how that has changed recently as a result of an active late stage private security market, which is happening in peloton's case 13 months earlier when you saw entities like wellington and fidelity and geithner global -- and tiger global, two of the biggest hedge funds in the world, two of the biggest mutual funds in the world, they bought peloton for $14.50 a share. peloton raised $500 million 13 months ago. as a result of that, four entities that were historically big buyers of ipo's -- not only have they already bought what they wanted to buy, they might even be sellers at this point. and as a result, the ipo's -- and you can look at peloton and walk all the way back over the last six months -- that is a new dynamic. taylor: what are your thoughts

people who get on a peloton really get of.cceed when it goes public. there have always been and will always be alternatives that is. peloton seems to have established a brand for itself and has a very loyal user base. let‘s be if that sticks. itself and has a very loyal user base. let's be if that sticks. the company will need to keep their growth going. unlike peloton users, investors won‘t want to break a sweat. mia hussein, bbc news, new york. —— samir. the introduction of minimum pricing for alcohol in scotland appears to have cut drinking. a study for the british medical journal found that the reductions were most noticeable in own—brand spirits and strong ciders. scotland was the first country in the world to introduce a minimum price based on the strength of alcoholic drinks. there have been calls to adopt the policy across the uk. here‘s our health correspondent nick triggle. scotla nd scotland was the first country in the world to introduce minimum price, based on the strength of drinks. mounting concerns had built ab

peloton could kick butt. by the way, i'm not picking on peloton. i'm talking generally about maybe sometimes it's the unsexy stuff, the boring stuff thattic mas all the money. >> sometimes but it really comes down to everybody's trying to change something. and a lot of folks, obviously, when the markets are kind of sideways and the rest of it, people are chasing what are they chasing? the early investment so we're seeing that that's forcing up this pricing it's all just this whole circle and suddenly peloton is worth $8 billion prp they really? >> the company can do great. today does not indicate anything >> it's one day. >> exactly >> and this whole thing, talking about the ipo market a generally given the ubers, the lyfts, the we works problems. >> i think the public market is desperate for some new things in general. >> shiny new things. >> shiny new things. but in general there's so many share buybacks that the market has been shrinking so it's good to have fresh new blood. but it's that excitement that i think is driving some of these valuatio

that's what peloton's ipo is doing right now today.ht it was interesting to look at the existing publicly traded companies in the fitness and wellness area. by the way, there are not very many pure plays. peloton is neither fish nor fowl very generous ipo price. none of these stocks are near there except planet fitness which has been the most successful planet fitness old weight watchers, they are down 17%. club is the old new york sports club parent company and nautilus, exercise equipment company. i put those up how trivial the market value is in this area medifast, that's nutritional substitute stuff there's not a tremendous profit pool that public investors have access into the this general area of fitness and exercise, but see if that sort of comes to the rescue of peloton in the coming days. >> mike a lot of the other big fitness companies are still private then >> well, they are or it's kind of a local business or really just the equipment area. it's fold within larger companies so i don't think it's necessarily you have the pur

it's absolutely true peloton's red-hot.true, is red-hot stocks on an ipo, have not been great >> at one point yesterday, 75% of the ipos were down for the week >> that's the problem. i don't want people to lose money. maybe this is the one, where you can make money but i have to tell you, that would be unusual >> all right i got some calls out this morning. adding target to the number one slot >> target is fabulous. this is the same day and macy's is going same day jeff gwinnett is talking about how important that is. he's reinvented target unless you've been to one of the small format targets or targets where there's no other store, you probably don't understand why it's going up. if you're next to a greatland target, the old-fashioned. the new targets are exciting and they are local they are all about the neighborhood i love that. >> there's a lock at costco, home depot is that w.a.t.c.h. it spells w.a.t.c.h. i am looking for the etf to make money. and they blame me. >> speaking of acronyms. f.a.n.g. d.o.j. is following u

to eventually become public, peloton would need to get people to dig the class. become public, pelotonet people to dig the classlj become public, peloton would need to get people to dig the class. i might buy one. i like the experience of being ina buy one. i like the experience of being in a community and having an energetic teacher in the room. we woke a lot, we are alone a lot so it is nice to have a social dynamic to the work and experience. users are loyal and that may help the company succeed when it goes public. there will always be alternative to this. peloton seems to have established a brand for itself and has a loyal user base. the company will need to keep going, unlike peloton users, investors will not want to sweat. if she is trying to make me feel unfit, she is trying to make me feel unfit, she has succeeded! the negate taking a cue from wall street after up beat state m e nts a cue from wall street after up beat statements from president trump lifted it. this is bbc news the top stories this hour: president trump has described the formal launch of impeachment proceeding

john: this is my a fundraiser for peloton, and it has always been -- eighth fundraiser for peloton. believers and nonbelievers. the people who believed, for every one of the rounds, for eight years now, have been very, very, very happy, and we are going to continue to delight the capital partners who invest in us. >> you mentioned fully funded. what are you going to do with some of that money? john: we are doing things like building a $50 million television streaming studio in new york city, another studio in london, where we will higher our language and doctors so the german instructors are being hired out of the london studio to stream to our german market which will open in 60 days. content,vesting in new new verticals, and we brought it to market. canada, the in u.k., and germany. we are in investment mode. you are losing money. it's like, no. it's semantics. we are investing money and we feel good about what we are doing. >> how do we feel about the consumer market? we are in a bull market. we continue to be, other than some of the volatility we are experiencing. what do you he

cnbc's parent company is an investor in peloton.e you'll be talking about today time for the top trending stories. rahel solomon is back. what time do you wake up in the morning? >> 2:45. >> imagine waking up then and asking for an update and hearing samuel l. jackson's voice. users can choose between a clean or explicit option >> if you don't like frightening answers, don't ask me scarey questions. >> this is great i hope cardi b is next >> the cleanest line from pull p fiction. >> i'm not a fan >> you have to remember to charge your electric cars. april officer in the middle of a high-speed car chase when he realized the battery was low apparently someone forgot to charge the car a spokesperson pointed out this was a user issue and says it happens with gas cars every so often. don't you hate when that happens. >> did they catch said offender? >> they found the car abandoned. they had to stop the pursuit because of danger to the public. >>> marrow kart hit the market the game became the number one iphone app the game does offer var

opene watching the peloton against this very dramatic hearing with mr. maguire, the acting dni -- director of national intelligence. what are you making out of the hearing so far? i think maguire is the start of the hearing. i quipped maybe they should have made it a closed hearing, because i do not think any of the congressman distinguished themselves. in his opening statement he was quite impressive. he made it clear, chronological explanation for why he did what he did and a legal explanation. the democrats questioned why he went to the white house and why he went to the justice department when his opening statement explained just that. tried torepublicans undermine the democratic process of bringing this issue up in a public setting. i do not think it sheds much light on the issue at hand. what is next is going to be the interesting thing. there is no clear strategy from the democrats that i can see on how they take this forward from here? is youone rule of thumb do not want to go after a navy seal. of nationalre, head intelligence, commanded seal te

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the listing values peloton at about $8.1 billion.res are expected to begin trading on the nasdaq today. that is your bloomer business flash. alix: for more on peloton, steve chiavarone is still with me. we are right now looking at the peloton treadmill, because there is one, and it is cool. would you be interested in this kind of company? steve: the way we approach ipos at federated, particularly for a growth franchise, you don't have to be profitable today, but you have to have a scalable business model and cash flow growth. i'm not prepared to talk about a particular ipo, but if you have a scalable business model and cash flow growth, that is a business we are going to be interested in. those companies where every dollar of revenue comes with a dollar and a half of extra expense, those are the ones we tend to shy away from. casual growth here is pretty good, actually. alix: in that circumstance, how long do you give companies? xke ok, we will give you amount of time. steve: we are long-term holders of ipo's. if you look at our smal

that's an issue you have with peloton over time.tainly the churn rate now is pretty good, but you don't know what it will be over time. clearly they think they have a large market opportunity you don't spend that money on marketing unless you believe it is a large addressable market. what i liked about the peloton business model is they chose to scale back that spend, which is their option to do that, if they recognize the ability for customer customers to buy a bike and then for subscription is limited. then they could scale it back and have a good recurring revenue model. getting $40 a month from a dedicated core group of users, you can have that be a very successful company is that company worth more than $10 billion over time, that's not my business to understand that, but i know 10 billion is a large amount of money for an exercise company >> clearly they have their sights set on overall gym member ship ships, but the point is really good, bob. good clarity on important names. good to see you. have a good weekend. >> good to se

peloton is the tesla or the iphone of sports equipment. from 500,000 peloton subscribers to at least 10 million. that's the type of acquisition you need to make if you're going to compete. they have way too much pride. they think that they make the best products in the world and nobody else can. incorrect. tesla, peloton, facebook, google all making wonderful products right now. the pixel 3 with google is a better experience than the ph e iphone. i have both. i use both. the google pixel is a better phone. >> do you agree with this or do you disagree >> i think there is a huge opportunity around apple tv and combining what they have built there with the streaming service that would give them an enormous competitive advantage over the other players in the streaming space. is it coming next couple of weeks? >> this is what i would say with regards to that. i think apple tv will be a humongous disappointment. why do you get a tv service? it's for content. why do you use the television? there is this little company called disney coming out. th

you might be interested in peloton. they arejoining fan? you might be interested in peloton.se bikes with screens to stream classes — or take on your friends over the internet. samira hussain has been finding out more. this stationary bike is unique with on demand classes that allows users to virtually ride with thousands of others. ican i can understand the appeal but i really miss the communal aspect of going to the gym. there is a community element. you can see people on the leaderboard. in this weird way you feel part of a community even though you are spread over the world. half a million have bought a peloton, but translating that popularity into success on the stock market is a different game. peloton has not yet made a profit. the price tag $2000 plus a monthly subscription fee for live stream classes. people who get on a peloton, rarely get off. users are loyal which might help the company succeed. there will always be alternatives. it seems to have established a brand and has a loyal user base. it is if that sticks. the company will need to keep growth growing, unli

lyft, and uper down, slack, down peloton is down.ot a pretty picture something we'll be talking about. more on that coming up that is just a small slice ofov overall market futures gaining steam. they are up 70 points. we say we are within 2%. we are the dow is 1.8% from all-time highs. eight of the dow 30 have hit one year, multiyear or all-time highs this month eight of 30 hitting that high in the bad month of september we are seeing a mixed trade in asia shanghai up, japan fell .7%. rosier in european markets europe kind of plugging along. they are gaining .4, .5. now to the place that is driving the news that is driving stocks, that is washington it follows an avalanche of developments over the call with the ukraine leader we have more from d.c. with the latest good morning >> good morning, brian with 225 represents, a clear majority now supporting some impeachment action the president is on attack going after democrats, journalists, even the whistleblower this is some of what he had to say when he arrived back in washington >> i

whirlwind peloton's from kickstart on raising to an ipo over $1 billion.ow the exercise company did it. this is bloomberg. ♪ amanda: this is "bloomberg markets." i'm amanda lang in toronto. shery: i'm shery ahn in new york. call it a kickstarter success story. peloton started making his luxury stationery bike after raising more than $300,000 from crowdsourcing. the company is now poised to raise $1.1 billion in an ipo. let's welcome todd metcalf from london. directtoday how smiled is falling 18% from its ipo price on its debut. what do we know about peloton? how well are they go along with their ipo process? that is a big question, interesting time to ipo. some companies have gone quick out of the block, but today you have a lot of hope and direct,ion around smile and that has disappointed, despite pricing above the range. peloton is talking with investors, getting a sense of where the market is. the question for investors, this is an operational, expensive product. is there a way they can move from lossmaking into a mass-market product, that will deliver

and that's true of peloton peloton, if you look at the founders, they actually come from software andy a vessel or vehicle for many of the great things that they're doing with content in classes and trainers and so really you have to have a multi-disciplinary company and team at this point to sell hardware now if you look at the subscription model, that tells you right off the bat that this is more than a hardware company, that there is software and services here and content that is very key to reducing churn and to keeping people engaged as customers. >> rhett, i'm very glad you h'r here today because you've been here for all of the ipos grading them you say peloton is really a better example than what we've seen in many of the recent ipos because they get more numbers. >> it's a shining example of what you should do if you want investors to model out your business peloton did something shocking in their prospectus. they gave us the lifetime values of their customers which is just something that we almost never see and it's really sharp contrast to something like wework where we can'

peloton is just starting its road show today.erate in hardware, software, media, logistics they are all over the place. it will be interesting to see what investors are willing to pay at the range they set last night. that said, they have not had some of the major headline risks wework had that caused investors to bulk. stemming from the large losses, business model as well as some of the corporate governance that concerns them about wework not to mention the fact that every day, we are seeing headlines about potential delays it is on it is off. they've bailed them out with private investment all of those things tend to spook investors. putting capital up in an ipo any ipo is a major risk investment >> today is september 11 an important day for all of us it holds an important day in the heart of drexel because you are a veteran oriented firm. >> we'll be memorializing those on this day that lost their lives and those who went forward to fight to defend our freedom so we wouldn't have a repeat day like that. september 11 is signif

peloton. >> you really -- he doesn't like peloton.wife's clothes. >> lisa does. >> wasn't just a sports bra. there is so much lululemon hanging on that stuff. like this is like a lululemon store she's got hanging on the bike. >> you did say it was a good place to hang your pants. >> my wife was a state champion when she was 14, she knows where she's speaking people on twitter, if you want to have at me, i did not hang my brione on that because there was no more room >> as i'm sure you watched yesterday, when i had ginni rometty, hans vesper join me for this panel on 5g, that's -- that's just not good >> should have been at 18. at 18. >> 29. they had to do 29. >> 18 is where you start getting real value for peloton 18 what are you doing on the set? not even time. see who's here >> yes, willfred frost ready to come on. >> is that in honor of me? >> it is in honor of you >> it is all about me. it is about mindfulness at the same time. go ahead. >> thank you, jim. i did want to come back and talking about uber, of course, and business of

do you get the peloton business model. >> if so, i love peloton. >> as do i. >> all have more more than i have a hard time with the income statement, though i have a hard time with the expenses and you know they talk about the total addressable market i don't know that that -- i'm not as optimistic on the total addressable market it's of an expensive machine to boy. expensive machine to subscribe to obviously that's a good part of the business i think the treadmill maybe hasn't been -- i don't know -- i'm not clear if the treadmill is really dsh zsh dsh. >> as as purpose as the bike. >> as popular as the bike. i probably wouldn't own the stock at this range sfla you are a peloton user guy. >> dennis is my guy. hannah marie, and i get on that thing. >> love. >> yes. >> many so of those classes are ridiculous. >> but to your point it's a $2,000 bicycle a $5,000 treadmill you pay $50 a month. you know you have to ask yourself what is the addressable market in some ways the addressable market is everybody on the planet we should all be in shape. but it ain't happening i'm somewhat skeptical

peloton opens up to the downside today in fact. it could be the second worse unicorn ipo of the year. have investors had enough of these money losing start ups we will ask and yes, we're going to talk about uber as well on that note. they've lost a third of its value since its debut and now they're dealing with tougher driver laws and questions ab their security practices we're going to speak b about this with the company's ceo straight ahead plus beyond meat has a big new partner. amazon wants to write its own laws and yet another investigation into big tech. we'll have all of that in rapid fire but would you begin with these markets. dom chu with the highlights here >> the highlight we are having marginal losses for the marketses overall. right across the board, just fractionally speaking, technology really take iing moro a hit than nasdaq down by about three quarters of a percent. the dow was positive to about 44 points it's not a lot of green territory. it was down 166 at the lows, so right in between that range so far. the s&p

i have a peloton. i love it. i use it a lot.now some people used to say oh, yeah, the old spincycle bike, you throw your jacket on it and let the laundry dry on it. i like it. i see a lot of people as real a fanati fanatics. that becomes the issue, millenials send it out on social media and everybody gets hyped up. e-cigarettes are under attack right now. in fact, there's breaking news that walmart is going to cease according to a memo, walmart will cease sales of all e-cigarettes and sam's club as well. they are discontinuing it. u.s. senators, this is also hitting the tape, a bipartisan group of them are saying in a letter to the fda remove all pod and cartridge based e-cigarettes. that would be a little scary if people think everybody is using them, these are 18 to 35-year-olds who are predominantly participating. >> yeah. it's a huge hit. huge hit. we cover those stocks very closely. obviously tobacco was ex-millenial until the vaping became huge. so both sectors rely on vaping to be an important part of their pillars of gro

cheryl: peloton hitting a speed bump. the makers of the exercise bikes and treadmills watched its shares end at 11% on the first day of trading. what mes message does that send. lauren: there's nothing like being on a long, cramped flight and sitting next to a screaming baby. how one airline is trying to make your flight a little less stressful. it is friday, september 27th. and "fbn: a.m." starts right now. ♪ ♪ we keep waiting. ♪ wait,. ♪ waiting on the world to change. ♪ we keep on waiting. ♪ waiting. ♪ waiting on the world to change. ♪ it's hard to beat the system. lauren: welcome to "fbn: a.m.." laurei'm lauren simonetti. cheryl: i'm cheryl casone. lauren: let's take a look at how your money is moving this morning. for the week, this is the final day, the dow can stem the week's losses, it needs a 44 point game. futures are up 46 right now. cheryl: weak economic data out of china, the u.s. political scene keeping asia in check overnight. the shanghai eeging out a slight gain. lauren: let's look at europe. the ftse is

plus, peloton begins probably trading and we speak with the ceo. ebay's ceo steps down from his role. who will help invigorate the floundering company? we begin with what was a historic week in washington. on tuesday, nancy pelosi formally opened an impeachment inquiry on president trump. the investigation focuses on a phone call president trump had with the president of ukraine and whether he betrayed the nation's security is seeking to enlist a foreign power to tarnish a rival for his own political gain. in this case, the son of former vice president joe biden. while not tech related per se, an interesting company did show up in the partial transcript of the call. that company, crowd strike. i spoke with the ceo about the mention of his company in that presidential phone call. >> the only reaction i have is that in 2016, we actually performed this investigation. we worked closely with the fbi and turned over all the forensic data, and we stand by the conclusions we have and they were backed up by the intelligence community. i think a lot of what

we sat down with the ceo of peloton.pelling testimony from the acting director of national intelligence on whistleblower complaint that the president trump asked ukraine to investigate

john: i tell you, jason, this is my eighth fundraiser for peloton.eople either see it or they don't. there are believers and nonbelievers. those who believe, who have invested in peloton, they have been very, very happy, and they -- and we will continue to delight the capital partners who invest in us. jason: you mention fully funded. what will you do with that money? what does expansion look like? john: we are building a $50 million streaming television studio in new york city, nother in london, where we will hire our foreign language instructors to stream to our german market, which we open in 60 days. we are investing in new content, verticals, the treadmill market, u.k., germany. we are in investment mode. someone earlier today was saying you are losing money. it is semantics, we are investing money and feel good about what we are doing. jason: how do you feel about the consumer market? you sell a very high-end product. we are in a bull market. we continue to be other than some volatility we are experiencing. what do you hear back from your custo

that is the attraction of peloton.nwhile, mcdonald's making some diet changes, helping beyond meat to soar. you can see mcdonald's up just slightly, about a quarter of a percent. they say they are going to try the plant-based burgers in canada, try them out in canada. if people like them, maybe they'll expand it. secondly, keurig dr. pepper will replace kraft heinz as a from cider of -- provider of packaged coffee. that breaking news, could the gm strike be coming to an end? a big hint earlier after the automaker said it will continue to provide health coverage to the nearly 48,000 workers across the who are picketing over such issues as higher wages and greater job security. eight days ago gm said the autoworkers' union would have to cover those health costs. so could gm's olive branch help to end a walkout that is costing the company $100 million per day? gm's stock up 1%, we are now joined by grady trimble who's been on the picket line in detroit for some time. grady, how are the workers reacting to the latest news?

coming up, a tough ride for peloton. the company begins trading as nasdaq opening nearly 7% below the ipo price. we hear from ceo john foley. and if you like bloomberg news, check us out on the radio. you can listen on the bloomberg and in theerg.com, u.s. on sirius xm. this is bloomberg. ♪ taylor: tech ipo's were in the news this week. peloton debuted on the nasdaq, thursday, dropping nearly 7% at the open after raising $1.6 billion. bloomberg's jason kelly sat down 's ceo john foley shortly after its trading debut. john: we are playing the long game. we see this as literally building millions and millions of subscribers around the globe in the coming years. and now we have the money to do that. we are fully funded after today's primary, so we are feeling confident. jason: and when you think about the last couple of days and really the last couple weeks, you mentioned the markets. i mean, wework is on everybody's mind. it is a tricky ipo market, to say the least. do you have a sense of sort of where the miscalculation w

we sat down with the ceo of peloton. we'll find out. >>> compelling testimony from the acting director of national intelligence on whistleblower complaint that the president trump asked ukraine to investigate joe biden and his son. we have the latest from capitol hill how this could impact the market and how the impeachment inquiry could to from here. all that and so much more on "making money." >>> stocks we're sliding a little bit off the session lows of after a report the trump administration will not renew waivers set to expire in november with respect to huwai products. however there is a source telling fox there is no decision on extending those temporary licenses right now for the chinese company. point view wealth management david dietze and monica mehta. let me start with you. these seem to be speed bumps. they're not derailing the market. it is off less than 100 points. here is what i'm seeing that is really intriguing. the report is out. america leveled sanctions against chinese oil tankers. on the other hand

peloton's path to profitability.id they are not buying ipos some of the major wealth managers are not looking to take chunks of the ipos given how poorly they have performed. >> it may not be wework specific but it is the effect of all of these other situations out there? again, if you don't have earnings right now to show if you're going to say we're going to get to growth or we're going to get to profitability but it will be three, four, five years down the road or longer, good luck selling it. >> peloton is not doing itself any favors due to the structure. some of the investors just don't buy into the dual class share structure now seeing how it's affected other companies and the ability o of leadership to move forward. >> how does this work itself out and come out the other side? does anyone decide to do anything now >> i think the next data dog, the next cloud player will be fine the question is inventory. what we've been saying for the past couple of months is everyone talks about the stampede of unicorns there

we look at peloton as a new media brand.an plug and play different offerings on the product suite in the same way disney acquired star wars or other third party content and really allow their instructors to become, to some extent, celebrities. >> spencer, the valuations are irrelevant then? >> no. the valuation is highly relevant we just think there's a terrific growth story that goes along with all of that given the fact that they're seeing year over year accelerating growth with a nice margin profile and you look at the customer union economic the, which is where we focused on financial analysis, as you package that together, this is really a price to sell story that will continue to be exciting to the public markets. >> michael, i see that you have a rating of a neutral on this stock. certainly it's popular right now. we talk about fitness fads all the time do you think that peloton can continue its growth rates it put up recently? >> thanks for having me on exercise trends are notoriously faddish. it's going to work on p

now peloton, they're saying it is eight ways platform, can i tell you what peloton is it is a way to hang your towels up it is. it is like my wife has a sport braz bra on the peloton at least make it look like a platform it is a platform for her dirty clothes. >> you're not buying it on friday, right? >> it will come and will be all exciting, like the best workout known to man and the guy is really charismatic. charismatic. charismatic. i don't give a darn about -- i want earnings per share. do you see chewy they didn't -- suddenly it is not enough that all of the boxes that you see on amazon are chewy. suddenly someone is talking about earnings what the hell? >> you're referring to this nomu nomu nomura takes it to buy. >> that's fighting the tide. we want earnings earnings playoffs this doesn't even merit -- peloton is a bike. okay it is a bike it has screens and you got ally and she's -- go fast, go faster. there, that's what we're dealing with. >> our parent company is an investor, by the way. >> i love that that's why it is such a great company and i'm going to buy two more pelo

peloton dropped in the debut day. look like we'll get that ipo this year or maybe next year. endeavor, that is another company, that is kind of a talent agency sort of, that is a company which now delayed its ipo twice. back to joel shulman. you invest in entrepreneurial companies. >> right. stuart: this is a really pretty bad ipo climate and entrepreneur climate. >> you're absolutely right. we invest in publicly-traded entrepreneurial companies. when you look at companies like uber and lyft and wework and peloton, these are entrepreneurial companies. so is pinterest and so is beyond meat. there are a lot of entrepreneurial companies that came out maybe as ipos. what we look at, we have overlays to our models. we don't get into ipos for variety of reasons. secondarily we like to look at entrepreneurial companies that exhibit good behave are i don't remember. now the last few weeks we've seen a lot of examples of companies where there has been, you know, behavior, particularly in wework, that may have appeared to be se

how big of a risk factor is it for the peloton ipo?sly compute into what people think that the business mo model looks like so it doesn't knock it out of box. that is why i wanted to get to 370 is multiple years including damages. >> and if you think about this rationally, what portion of the music is important to the consumer, not a huge portion but they have opened themselves up to this because they made agreements with the other publishers and now it is quite easy to kind of hold them to cansoransom forg semg settlement and 300 would be a huge chuck ever that. >>> still ahead, a panel reportedly set to criticize the fda for the certification of boeing max jets. details coming up. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no plat

peloton's debut compared to other recent ipos. on average we had a lot of high-profile disappointment on average we're still up 18% if you strip out beyond meats. beyond meats can excuse everything, a outlier up 450% this year. uber and lyft still above their ipo pricing. crowdstrike was pretty good, that company we talked about in the transcript. we would bring up graphics for you. finally beyond meat and the rest. guys, i will throw it to you, erin. you know these valuations people are saying at these private valuations you're over paying for businesses that don't make money. >> yeah. there are a couple issues specifically with peloton. one they're valued 8 billion. one of these huge ipos that is coming out very highly valued and another thing not openly do they have losses, most ipo companies they go out when they still are incurring losses. the problem with peloton they admitted they have financial accounting problems. they're actually not sure about their own accounting. on top of that their losses doubled last year. so parti

the people who invest in have been- in peloton very happy.delight the capital partners who invest in us. ♪ viviana: you are watching "bloomberg surveillance." a look at the bluebird business flash. -- the bloomberg business flash. -- this comes after the company postponed its ipo over concerns of its valuation. alsoe told wework could turn to job cuts numbered in the thousands. slumping oneloton its debut. the latest in a long line of tech startups to slump on its ipo. the fitness company raised $1.1 billion. tom: we will come back and look at the initial public offering losses we have seen over the last number of weeks. right now, a morning muster. for our global audience, the former mayor of new york. the atlantic has a piercing study. giuliani -- it is impossible the whistleblower is a hero and i am not. these more on's. when this is over, i will be the hero. he goes on to other choice phrases. there it is. i am not acting as a lawyer, i am acting as someone who has devoted most of his life to straightening out government. francine: what i

. >> well, we had heard rumors of air bnb and peloton. >> peloton has been reported. and air bnb is planning the first half of 2020. >> right, there were many speculations. >> the problem that you are trying to solve employees who don't want to wait that long 10 or 12 year to get value out of companies they work for. this was not a new problem, we saw it happened with facebook. it took ten years. it was really against these progressi exchanges. can you talk about pros and cons. i know companies don't like companies to go out and sell. >> what's different now was not the case five or ten years ago. it is companies now recognize that shareholder and employee liquidity getting cash before it is public is a beneficial thing. you are seeing it with spacex, they got one of the broadest company liquidity program in the world. what they recognize is employees going to be in a company in four years and you will be private for twelve. you should publicly start helping them. the last two years what we have seen is an incredible number of institutional sellers. it driven our volu

busted deals like peloton. on the heels of smile direct and lyft and uber. >> boo >> they're booing, becoming the norm there is a big reason why it keeps getting hammered especially the turbocharged growth stocks. did you see them today kind of to the point the president i hope follows through to block more chinese iphonipos >> no, no, aagh! >> i don't chatter about limitations by the president causing the market to get hit because anything that's not flat out suggesting compromise indicates that we're much furthe further away from a trade deal than the bull has hoped. as someone who wants the chinese to play fair, i think a ban on chinese ipos would be a blessing it's not what's in the cards, i can tell turns out talk is really about limiting american investment in chinese companies. and it's not as sweeping or as negative as the market seems to believe. look, the white house isn't happy with american pension plans especially federal pension plans having to add lots more chinese exposure which is what's recomm

peloton shares skidd eded 11% lr than its debut.t's addictive for its core users. 95% of people who sign up are still working out a year later. 1.4 million users. and the ceo says he can reach 40 million households or more. but critics wonder if that many americans will pay $2,500 for a bike and $30 a month for the programming. the ceo says it's not just an expensive product for one percenters. he did some math and found it's the opposite. >> we're trying to shift the optics on affordability. and for the value you get, for $29 per person for the hardware. we think it's crazy affordable. >> he takes the bike and divides it by two. and then, divides it by 12. it's 58 bucks a month. it is less than a gym membership. >> if you have the money. >> he was looking ahead to when big investments pay off by turning a profit. >> we believe we are investing in the future, investing in new categories in the trend and yoga and categories we will bring in the coming years. >> he teased a new product he said he shouldn't be telling me about. they're

the fitness startup peloton joins the stock market but its been uphill going, on day one.accinations across england. our health editor hugh pym reports. there wasn't a care in the world of children in this afternoon but there's plenty one decision is to get their children vaccinated. i am hundred percent for vaccinations. i believe that putting a child's health and happiness is always more important. in nearly all but one of the english regions. the only area with the vaccination rate remained unchanged was in the northeast which had the highest level of coverage and 94 and a half percent. london was the worst with only just a half percent. london was the worst with onlyjust over eight out of ten children receiving the inoculation. our very clear, particularly for children being back in school, make sure they have all the vaccines because these diseases can be very unpleasant and can lead to death. this is outside source live from the bbc newsroom. our lead story is? the whistleblower complaint is released — it alleges officials tried to hide president trump's attempt to g

peloton has a market vue of nearly $7.57 billion.eo said said it's all about growing right now. >> we are investing andn we're investment mode and prioritizing growth over profitability right now. we are hiringtr itors opening storiesop doing logisti all of that is expenses out in front o renue. we call it investment stage. and we think it'sin disci investing. >> but it was a rough opening for those shares closing down 11% today too 25.76. meanwhile, cruise line operator carnival beat earning eavimates but weaker than expected guidance due to a jump in fuel prices. lot of factors at work. >> a number of noisehings. we had hurricane short-term disruptions and itinerary. arab yan gulf disruption and planra ities had to cancel and rebook people in shorter periods and s so a on. mber of noise factors that led us to primarily because off the spike fuel prices to lower guidance a little bit. >> carnival shares fell 8.5% to 43.9 and i is been a bumpy road for uber and investors after going public a few months ago. but the ceo todt said t he

now he is hoping to raise $1.1 billion in peloton's long-awaited ipo.eloton is not the only tech ipo we are watching, cloudflare is expected to price shares as it seeks to raise $490 million in its ipo. investors will be watching the companies trading debut in new york on friday as another indicator for other tech companies in the pipeline. meanwhile, anxiety continues to grow around wework's offering among a plummeting valuation. joining me now is our guest. clearly a lot to digest. i wanted to stt with cloudflare. what do you make of the fact they are looking to boost the price range? >> truly amazing. we have been reporting they boosted the pricing from $12 to $14. we had a lot more optimistic sentiment two days ago among these ipos. these ipo's that boosted their pricing did well. taylor: talk to me about peloton . what is the tone? sonali: two days ago, everything was ok. today, when smile direct club was going to market, the nasdaq was up. for them to fall so much has cast a cloud over a lot of these listings about to happen because investors want

not only have we had a wework pulled, we've got a peloton listing and falling significant can'tly?great reckoning in the public markets of these public markets, the unicorns in the private market you see software is eating the world and what's happened is that has been stretched as the natural things that have been disrupted like, you know, salesforce disrupting software for salespeople now it's migrating further and further afield so you're seeing it come to commercial real estate, you're seeing it come to fitness. the key thing that we think about is some of these models have lower gross margins attached to them and in the private markets they were trading like software companies, but if you look at some of these companies with much lower gross margins, very different businesses, i think the public markets are voting on this they say, hey, this doesn't get a software multiple because you're reenvisioning something. >> that's interesting. gross margin very binary about 15% you can still spin with this but below 15% you can't. is that what you're saying >> zoom, 81%, cloud first 77