Jim Cramer Turns Positive On Peloton Following Interview With New CEO

Peloton Interactive Inc PTON CEO Barry McCarthy was featured in an interview with Jim Cramer on CNBC's "Mad Money" Wednesday night. Following the interview, Cramer turned more positive on the stock.

"I think he can run this thing on a subscription basis," Cramer said Thursday on CNBC's "Squawk On The Street."

"No one knows better than he does."

Cramer noted McCarthy was largely responsible for turning around the subscription business models at Netflix Inc NFLX and Spotify Technology SA SPOT.

McCarthy plans to lower prices and outsource some of the manufacturing, according to Cramer. Peloton is in a better position than most realize, he added.

The company has a tremendous amount of inventory and a strong cash position, as well as a new CEO who Cramer called a genius.

See Also: New Peloton Lanebreak Similar To Video Game: Is It More Than Meets The Eye?

In the interview Wednesday night, McCarthy said "I think there's an enormous opportunity for us to flex the business model and dramatically increase the TAM."

"I'm not focusing on raising prices, I'm focusing on doing exactly the opposite and exploring how much price elasticity there is for the business."

PTON Price Action: Peloton has traded as low as $22.81 and as high as $129.70 over a 52-week period.

The stock was up 0.056% at $27.02 Thursday at publication

Photo: Courtesy of Peloton.