Not many people feel nostalgic about the COVID-19 pandemic years, but John Foley, the former CEO of Peloton, might be one of them.
Peloton, a maker of high-tech fitness equipment, initially thrived during the pandemic when millions needed a way to exercise at home. In 2020, the company saw a sales increase of over 170 percent, and its valuation soared from about $8 billion to nearly $50 billion by the end of the year.
However, this boom was short-lived. Foley, who became a billionaire from this rapid growth, left Peloton in 2022, facing significantly reduced wealth amid declining sales and a falling stock price.
Foley said to the New York Post, “You know, at one point I had a lot of money on paper.” “Unfortunately, not in the bank. My money is all gone. In my life, I’ve had to sell nearly everything.”
Waning Wealth
A startling 87 percent of Foley’s fortune had vanished by the time he left the company completely in September 2022, according to Bloomberg. Foley had resigned as CEO in February but continued to serve on the board.
His personal wealth dropped from a height of $1.9 billion to, as of the current report, about $225 million.
One must adjust to certain difficult lifestyle adjustments when going from billionaire to centi-millionaire, such as selling your $55 million beachfront estate in East Hampton, Long Island.
These days, Foley is resuming his pursuit of success with Ernesta, a made-to-order rug business.
“I’m working hard to try to earn money again because I don’t have much left,” Foley joked, according to the NY Post. “So, I’m feeling both hungry and humble.”
Crashing Out
Peloton’s problems started later in 2021, as the pandemic started to abate. The corporation hired thousands more people and invested $400 million in a new plant at the start of the year, counting on its rapid growth to continue.
That turned out to be a mistake. The major wake-up call arrived in November when Peloton’s first-quarter earnings drastically predicted that revenues would fall short of the $1 billion estimate that had been made just three months prior. Peloton’s shares instantly fell by 35% in a single day, terrifying investors to no end.
Bad PR then took a twisted approach. Its flagship treadmill injured numerous people and killed a kid. There were subsequent recalls. TV series included characters who died while riding Peloton bikes; in one instance, this caused a decline in Peloton’s stock price.
By 2022, hundreds of workers were being brutally laid off, and their compensation was an insult: free Peloton memberships. The company’s new facility was also on the cutting edge.
Since then, criticism for its sleazy tactics has persisted. Customers were furious when they learned just last month that the company intended to impose a $95 activation fee on anyone who had purchased one of its used bikes.
With Peloton now trading at under five dollars per share and its market cap dropping to just $1.8 billion, it’s hard to say it hasn’t been a tough ride for the company!