Peloton (NASDAQ:PTON) shares surged at the opening bell today after the connected fitness platform entered into an exclusive partnership with popular short-form content platform TikTok. The two brands will create a new fitness hub on TikTok. Dubbed TikTokFitness, the hub will feature custom Peloton content. The deal marks the first instance of Peloton creating social content for a partner outside of its channels.
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Some of the content in the works includes live Peloton classes, original instructor series, creator partnerships, and collaborations with celebrities. Importantly, TikTok’s 1 billion global active users could significantly widen Peloton’s reach. In another development, TikTok Shop is looking to increase its U.S. business by as much as tenfold this year. TikTok already has 150 million users in the U.S. and achieved a global merchandise value of around $20 billion last year.
What is the Future of PTON Stock?
Meanwhile, Bernstein’s Aneesha Sherman has reiterated a Hold rating on Peloton while lowering the price target on the stock to $10 from $13. Overall, the Street has a Hold consensus rating on Peloton and the average PTON price target of $7.57 points to a substantial 32.1% potential upside in the stock. That’s after a nearly 34% decline in the company’s share price over the past year.
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