David Einhorn says Peloton is severely undervalued | Wilnesh News

shares Peloton The company’s shares soared more than 11% on Wednesday after Greenlight Capital’s David Einhorn said the company’s shares were significantly undervalued, CNBC has learned.

Einhorn made the pitch to investors while riding a Peloton bike, a person familiar with the matter said. It’s unclear what price Einhorn thinks Peloton stock should trade at.

This summer, Greenlight Capital, the hedge fund founded by Einhorn in 1996, disclosed that as of June 30, it held a $6.8 million stake in the company.

Peloton stock, which tends to be volatile, was up a little more than 1% year to date as of Tuesday’s close.

Einhorn’s comments came a day after the company announced a partnership with Costco to sell its Bike+ in the retailer’s stores and online as it looks to attract people with discretionary income to buy expensive fitness equipment. of young, affluent consumers.

The company is now led by two board members following the resignation of Chief Executive Barry McCarthy earlier this year. The company is searching for a new CEO and is expected to announce its next CEO this year.

When Peloton reported earnings in August, it said it was ready to focus more on profitability rather than growth after completing a massive refinancing that pushed back its debt maturities and helped turn the company around. Ying gained some time.

Peloton did not immediately respond to CNBC’s request for comment.