Should Apple, Nike Or Google Acquire Peloton In 2022?

Every week, Benzinga conducts a survey to collect sentiment on what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.

This week we posed the following question to over 1,000 traders and investors regarding Peloton Interactive Inc PTON, Apple Inc AAPL, Nike Inc NKE and Alphabet Inc GOOGL: 

Over the next year, should Apple, Nike or Google try to buy Peloton?

• Apple should buy Peloton
• Nike should buy Peloton
• Alphabet should buy Peloton

Long investors who own Peloton in their portfolios have had their guts checked, hearts ripped out and their peace of mind called into question time and time again in 2021 and 2022. Could an M&A, or at least ongoing M&A rumors, save Peloton bulls from more pain?

For starters, why might Apple, Nike or Alphabet look to purchase the castaway interactive fitness company? Well, it should come as no surprise the aforementioned trio all already have tech-enabled fitness offerings in their portfolio of products. 

With products like the Apple Watch, Nike+ and Google’s FitBit, it’s more than obvious that the trio of companies has ample interest and offerings in the tech-enabled fitness platform space. One might expect, with the ongoing advent of tech into the broader fitness industry, Apple, Nike and Google are only getting started in their journeys into fitness.

It’s not as if now would be the worst time to consider a purchase of the beleaguered fitness platform. Peloton’s market capitalization has shrunk from an eye-popping $47 billion in January 2021 to a relatively paltry $8.5 billion in January 2022. 

Among Apple, Nike and Google, which company did Benzinga readers believe would be the best to acquire Peloton?

Here are the full results from this week’s survey:

• Apple should buy Peloton: 32.6%
• Nike should buy Peloton: 48.3%
• Google should buy Peloton: 21.1%

What might give Apple, Nike and Alphabet pause from considering a Peloton M&A deal? Dennis Dick, the co-host of Benzinga's Pre-Market Prep show, said Peloton is still too expensive at these prices to consider a takeover:

Just to give you some perspective on $PTON's $8.5 Billion valuation. $NLS (home equipment) is trading at $155 million. $PTON a superior company, best of breed, but is it worth $8.5 Billion? $PLNT is worth $6.9 billion.

I don't think anyone takes over $PTON at these prices.

— Dennis Dick, CFA (@TripleDTrader) January 24, 2022

This survey was conducted by Benzinga in January 2022 and included the responses of a diverse population of adults 18 or older.

Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 1,000 adults.

Photo courtesy of Peloton.