Peloton's founder once said the company 'sells happiness' before a disappointing initial public offering

More than 400 investors turned Peloton down in its initial funding rounds

Peloton founder John Foley said investors rejected the company's initial funding requests because there was no clear indication of what the market for at-home fitness classes looked like. Ultimately, more than 200 angel investors gave the company its first round of cash. (Some users may experience a paywall.)

Raising the price of a Peloton bike increased the company's early sales—and that's part of why the bikes are so expensive

The original Peloton stationary bikes sold for about $1.2K, but Peloton founder John Foley said that price point made consumers skeptical of the product's quality. After increasing the price of a bike to $2K, Foley said people started to believe it was a quality product, and sales soon increased.

The fitness industry has seen a lot of fads—and Peloton might be one of them

Like SoulCycle and Tae Bo, Peloton has struggled to stay at the forefront of the fitness industry. Despite periods of incredibly high interest and high-profile users (like the Obamas), Peloton has lost many users since the pandemic ended—and has struggled to add more. (Some users may experience a paywall.)

Peloton's success is partly due to users' relationships with instructors

Despite Peloton's online model, most users feel a deep connection with the instructors and have created community groups around their shared identities (like being a mom or a lawyer). The relationship users have with their instructors has fueled consistent engagement and paved the way for instructors to take on personal brand deals. (Some users may experience a paywall.)

Peloton raised more than $300K in 30 days during its Kickstarter campaign

Peloton ran a Kickstarter campaign in 2013, hoping to raise $250K and ended the campaign with $307K. Peloton sold its first bikes during that campaign for $1.5K. Foley later said that most of the bike purchases came from investors, not necessarily new customers.

Peloton pays artists more for music than most streaming platforms because the on-demand classes are technically live performances, so Peloton has to pay both for the rights to the song itself and for the right to actually play the song.

The controversial 'Peloton Wife' ad from 2019 cost the company more than $1B in market value

The 2019 ad of a man gifting his wife a Peloton exercise bike sparked a wave of controversy, with some calling the ad sexist and fatphobic. The ad's backlash decreased the company's market value by $1.6B.

Owning a Peloton has become a status symbol

Given the relatively high financial barriers to entry—with its cheapest bikes selling on its website for almost $2K—owning a Peloton has become a status symbol for some, representing the disparity between access to fitness between the upper and lower classes in the US (especially during COVID).

Peloton hit a million subscribers in June of 2020

The COVID-19 pandemic ushered in record-breaking sales for Peloton, as gyms closed and at-home fitness classes became the new norm. However, Peloton struggled to keep up with the increased demand. As the COVID-19 pandemic's lockdowns lifted, many people returned to the gym, reducing their need for on-demand at-home fitness classes. Some say Peloton's strong subscriber base is the ticket to helping the company eventually become profitable.

The COVID-19 pandemic both boosted Peloton's business and shook it up completely

While demand for Peloton's at-home fitness equipment soared during the pandemic, the company didn't necessarily have the infrastructure to support the breakthrough sales. In 2021, Peloton bought Precor—a fitness equipment manufacturing company—to help boost domestic production and decrease a backlog of orders.

Peloton makes most of its money via monthly subscriptions

Peloton has two core revenue streams: the exercise equipment it sells and the company's monthly subscription that gives users access to its class library. More than half of Peloton's revenue comes from the company's core product, the monthly subscription. Its "Peloton App+" membership tier is $28.99 per month.

How Peloton got moms hooked

Peloton's at-home workout classes were a game-changer for parents, giving them a chance to squeeze a workout in without leaving the house. The community group feature on Peloton created a sense of community that made users incredibly loyal to the brand.

John Foley was the president of e-commerce at Barnes & Noble before founding Peloton

Foley worked for Barnes & Noble during the company's race against Amazon to dominate the e-reader market (Barnes & Noble had the Nook and Amazon had the Kindle). Foley says his time working for Barnes & Noble helped him learn the business of digital media, which is a core element of Peloton's business.

Peloton paid a $19M fine for its handling of treadmill injuries

In 2021, a six-year-old died after getting caught underneath a Peloton treadmill. A federal investigation into the company revealed that Peloton knew about injuries on the treadmill as early as 2018 and failed to report the incidents to the US Consumer Product Safety Commission.

Peloton instructors have built expansive personal brands

Outside of teaching Peloton classes, many instructors have amassed large social media followings and brand deals—ranging from modeling for Puma and Adidas to "Dancing With The Stars" appearances. On top of their influencer work, leading instructors at Peloton—like Cody Rigsby, Emma Lovewell, and Robin Arzón—reportedly earn salaries of more than $500K.

The word 'Peloton' comes from the word for the main group of riders in a cycling race

The word itself is French for "ball," but became the inspiration for the word "platoon" in the 17th century to describe a group of soldiers. Now, it's a common cycling term and the main focal point in cycling races.

In November 2025, Peloton issued a recall on more than 800,000 bike seats

Years after high-profile recalls on the treadmill due to reported injuries and even a death, Peloton issued another recall on the Peloton Plus bike seat. The company said it received three reports of the seatpost breaking.

IPOs that failed

Plenty of private companies fail once they try to go public. Failing can mean shares sell for less than their initial asking price on its IPO date, or it can look like a company pulling out of the IPO process at the last minute. Some companies with failed IPOs include Pets.com, Etsy, and Robinhood. Learn more about these companies and others here.

Just because a big name company is going public doesn’t guarantee a successful stock

A reporter dove into how highly anticipated IPOs can still be risky, and why retail investors should be wary of investing right away.

Listen to a 2026 interview where Bumble's CEO said its stock is down 96% since its IPO 'for no reason'

CEO and Founder Whitney Wolfe Herd said the company is still performing very well. She added that the business makes $1B per year and referred to it as profitable. She went on to say "who knows what people trade stock on?" and that she believes the stock market has written Bumble off as if it were debt

Read about the day Palantir went public in 2020

After more than 15 years in business, Palantir held its initial public offering (IPO) via a direct listing—meaning the company didn't rely on underwriters to assess the initial trading price or stock value. Palantir's stock ended the day trading 31% higher than the reference price.

Jenn Sherman was the first Peloton instructor

Jenn Sherman sent an email to Peloton with the title, "This is why you need to hire me." After auditioning, she became the very first Peloton cycle instructor. Since then, she's amassed a loyal following for her brash personality.

2023's worst performing US IPOs

While an IPO is a huge milestone, it isn't always a total success in the long-term. This data visualization shows some of the worst-performing IPOs of 2023, based on their percentage returns at the end of the year, It includes an NFT gaming company and a Chinese EV battery company.

Peloton, 'And Just Like That …,' and Chris Noth: all about Mr. Big's Peloton death and the following ad

In the "Sex and the City" spin-off "And Just Like That …", Mr. Big—played by Chris Noth—dies after having a heart attack after a Peloton class. In real life, the Peloton team had not been informed of the plot point. Peloton worked quickly to create an ad starring Noth in just two days in an attempt to get ahead of the story. But very soon after, Noth received public sexual assault allegations, leading to Peloton pulling the ad.

Initial public offering (IPO) is the term for when a company goes public

When a company completes its IPO, it's no longer a privately owned organization. Anyone can invest in the company by buying its shares on the stock market—opening up ownership of the business to the general public.

Ride along on one coffee company's journey through the stock market to better understand how a company goes from private to public.

Some companies like to make their IPO day antics unique.

An article details some of the wildest bell-ringing day stunts in recent history, from Clifford the Big Red Dog ringing the opening bell to one company's employees roasting marshmallows in a campfire on Wall Street as it went public.

An initial public offering is how a private company becomes public.

Digital coupon platform Groupon IPO'd in 2011 at a $17.8B market cap, but as of 2024 was worth just $103M—a 99.4% decrease.

It's difficult for individual investors to purchase IPO shares

Although the process of going public means the general public can invest in a company, the initial investment period is different. Before individual investors get in on the action, investment bankers sell the shares to larger financial institutions who can afford the asking price and risk associated with an IPO.

Nike went public in 1980, and the first share sold at $22

Nike stock plummeted in the four years that followed the company’s initial public offering (IPO). The company’s deal with Michael Jordan in 1984 ultimately revived investor confidence.

Read about how one of Palantir's cofounders explains the company's founding

Palantir cofounder Joe Lonsdale described the company's driving principle as fighting terrorism in a blog post marking its IPO. Lonsdale also said Palantir's software was developed with a keen focus on privacy, despite many allegations that it enables government surveillance.

Companies go public via an initial public offering (IPO) to raise large amounts of capital, helping them expand, invest in new ventures, hire more staff, or pay off debts.

Robinhood's mission of democratizing finance included its IPO

In 2021, investing app Robinhood went public—and decided to go about its IPO process differently. Unlike other companies, it opened up its IPO for the general public to purchase right away. A podcast episode explains what made Robinhood's IPO so unique prior to its launch date.

In 2021, Peloton instructor Cody Rigsby came in third place in 'Dancing With The Stars'

Rigsby has the largest social media following of any Peloton instructor as of this writing and is reportedly one of the highest-paid instructors. When he competed on the show in 2021, some fans felt like his cult-like following from Peloton kept him on the show, despite not being the strongest dancer.

Robinhood's pivot from everyday investors to hyperactive traders

The platform was conceived as a hub for first-time investors looking to get into trading. After criticism in 2021, the company pivoted to focus on more regular, daily traders, among whom the company's CEO has now become a cult hero.

US IPO issuance—the total dollar amount of new stock sold to the public via IPOs—hit a record high in 2026.

SpaceX's S-1 or 'prospectus' revealed many previously unknown details about the company

Those revelations include the company's unprofitability despite doing $18.7B in revenue in 2025, exactly how many voting shares Elon Musk will have in the company (roughly 85%), and more.

Whitney Wolfe Herd's return as CEO boosted Bumble's declining stock price

While the uptick didn't last, when Bumble announced Founder Wolfe Herd's return in 2025, shares rose in premarket trading and later that day. Investors likely hoped that her strategy could restabilize the business.

The story of Klarna's IPO

BNPY company Klarna went public on the NYSE in September 2025, roughly 20 years after it was founded. At the time, Klarna made roughly three-quarters of its revenue via merchant fees, charging a small premium for each purchase.

See the 25 largest initial public offerings in US history.

These 25 companies—which include UPS, Uber Technologies, AT&T, and The Kraft Heinz Co.—had some of the biggest IPO drops in US history. However, not all these drops led to long-term (or even immediate) success.

Spotify took 18 years to reach profitability—and 70% of its revenue goes to rights holders.

Theranos and Pets.com are among some of the biggest startup failures ever

You might have heard of Theranos, Elizabeth Holmes’s one-time blood testing company that landed the founder in prison for more than a decade after she was charged with fraud. The rest of the startups on a list of five of the biggest startup failures ever might not be as famous as Theranos, but they were met with similarly disastrous fates.

See how a top Peloton instructor spends her day

Robin Arzón is Peloton's VP of fitness programming and the lead instructor at Peloton. Besides teaching multiple classes a day, she reserves seven hours a week for her own personal training and says she trains like a high-intensity athlete. (Some users may experience a paywall.)

How one supplement company cost a short seller $1B

Pershing Square, a hedge fund founded and run by Bill Ackman, put short positions on Herbalife in 2012, because it believed the company was a pyramid scheme. Ackman's longtime rival and legendary investor Carl Icahn began buying Herbalife shares, causing the stock price to rise—ultimately hurting Pershing Square's short position.

Understanding TikTok-owner ByteDance's business model

ByteDance has ridden TikTok's major success to become the world's most valuable startup. This deep dive showcases some of the company's smartest moves and tactics, and where it's headed next.

Pets.com is one of the most emblematic dot-com companies

Pets.com—an e-commerce pet store webpage—is a prime example of dot-com companies burning through investments. Despite being a popular and well-known brand, the company struggled to generate enough revenue to become profitable. After raising approximately $82.5M in its February 2000 initial public offering, Pets.com filed for bankruptcy in November of that same year.

Going public has pros and cons for a company.

An organization transfers ownership over to new shareholders—who could be anyone—following its IPO date. However, going public expands a company's ability to increase funding and grow its business. This guide dives into the advantages and disadvantages of going public, and what those pros and cons can mean for investors.

Tesla short sellers benefited from the company's poor performance in 2025

Tesla was widely considered the most-shorted stock until 2024, despite consistent short-seller losses. Between 2016 and 2020, short sellers reportedly lost more than $11B as Tesla's stock price continued climbing. However, long-held short positions began paying out in 2025 as Musk's foray into politics and his eventual feud with President Trump hurt Tesla's stock performance. In 2025, Tesla short sellers made more than $10B.

Many startup founders pull out-of-the-box stunts to get their businesses off the ground.