David Einhorn speaking at the Sohn 2024 conference in New York on April 3, 2024.
Adam Jeffery | CNBC
Actions of Platoon 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 his pitch to investors while riding a Peloton bike, a person familiar with his remarks said. It was not immediately clear what Einhorn thought Peloton stock should be trading for.
Over the summer, Greenlight Capital, the hedge fund founded by Einhorn in 1996, revealed that it held a $6.8 million stake in the company as of June 30.
Peloton’s stock tends to be volatile and is up just over 1% so far this year as of Tuesday’s close.
Einhorn’s comments come a day after the company announced it was a partnership with Costco to sell its Bike+ in the retailer’s stores and online, as it seeks to reach younger, wealthier consumers with the discretionary income to buy expensive exercise equipment.
The company is currently led by two board members following the resignation of CEO Barry McCarthy earlier this year. The company is in the process of finding a new CEO and plans to announce its next leader this year.
When it reported its results in August, Peloton indicated that it was prepared to focus more on profitability rather than growth after finalize a massive refinancing this pushed back its debt maturities and allowed it to buy time to carry out a recovery.
Peloton did not immediately respond to CNBC’s request for comment.
