FT News Briefing Peloton’s turmoil could be appealing
Feb 10, 2022
Biotech companies are struggling financially as investors pull back, leading to a cash crunch. In contrast, Geode Capital Management has impressively surged to $1 trillion in assets. Amid its turmoil, Peloton may become an attractive acquisition for giants like Nike and Amazon. The conversation dives into Peloton's loyal user base, the challenges it faces, and how leadership changes impact its future. Additionally, there’s an intriguing look at Chipotle's adaptability in the face of economic pressures.
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Biotech's Long Game
- Biotech investing differs greatly from software companies.
- Drug discovery takes years, demanding patience from investors.
Fidelity's Index Fund Success
- Fidelity's CEO, Abigail Johnson, recognized the potential of index funds.
- She revamped Fidelity's passive arm, Geode, leading to substantial growth.
Peloton's Shake-Up
- Peloton's CEO John Foley was replaced, and the company restructured.
- This sparked speculation of a potential acquisition by companies like Nike or Amazon.