The shares of Peloton are up by more than 20% today following news of a potential takeover.
Peloton has been one of the best-performing stocks in the United States market over the past 24 hours. During Monday’s pre-market trading session, the stock rallied by more than 30%.
The company’s shares have gone up by more than 20% since the market opened earlier today and is currently trading at $29.74 per share.
The rally has seen Peloton’s stock trading around the same price as its IPO. The fitness company’s stock price has been rallying following the news of potential takeover talks.
So far, Amazon and NIKE are some of the reported suitors, with tech giant Apple, another company that is also reportedly interested in acquiring Peloton.
A source close to the matter disclosed to CNBC that the talks are in their preliminary stages at the moment.
Peloton has been underperforming since the start of the year. Its stock price dipped by more than 30% over the past six weeks prior to this latest rally. At press time, PTON is down by more than 15% year-to-date.
Despite the news of a potential takeover, some analysts don’t believe that the deal would go through.
Baird analyst Jonathan Komp pointed out that Peloton’s Chief Executive John Foley, along with other Peloton insiders, had roughly 80% voting control. This makes it impossible for any deal to go through without their approval.
The analyst added that Foley would likely not sell unless there is internal pressure stemming from the company. The company’s stock had experienced a massive sell-off in recent weeks, and the news of a potential takeover is the reason why it has rallied lately.
Some market experts believe that regulatory scrutiny of big tech in Washington could make it hard for the likes of Amazon and Apple to proceed with the deal.