Are Peloton's Bikes Just Loss Leaders?

Brian Withers, The Motley Fool
·4-min read

Peloton (NASDAQ: PTON) sells a high-end spin bike to get its members into a subscription for its live-class monthly subscription. Motley Fool analyst Tim Beyers and Fool contributor Brian Withers explain the cost structure and gross margins of the business on a Fool Live episode recorded on Feb. 8, and discuss why there's even more opportunity to improve margins over time. Brian Withers: He [a viewer named Brendan] asked whether the Connected Fitness products are a loss leader.