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Today's big stories

Peloton – the divisive luxury exercise bike brand – reported a stronger-than-expected quarterly update
The world’s biggest money manager thinks you actually should buy more stocks – Read Now
The Bank of England held off additional economic support, but signaled it’d offer more if it’s needed

1/3

Three, Two, One – Saddle!

What’s Going On Here?

Okay, Peloton in New York, let’s do this: the luxury exercise equipment-maker made its quarterly update count late on Wednesday, and its stock dug deep to climb 17% higher on Thursday. Great job, you smashed it!

What Does This Mean?

$2000 price tag or not, Peloton’s workout bikes didn’t seem too expensive for the higher-than-expected number of customers who bought them last quarter, which led to 66% higher revenue versus the same time last year. Likewise, Peloton’s digital subscription revenue rose by 64% as would-be gym bunnies hunkered down in their rabbit holes, only popping their heads up to scout out fresh workout content. And in what’s become a rare feat among recent earnings reports, the company even raised its revenue forecast for this quarter.

Why Should I Care?

For markets: They’re neck and neck!
Since the company’s stock market debut last year, analysts have been debating whether Peloton would attract and keep enough customers to become a lasting business. And its latest update added fuel to both sides’ fires: a raft of new customers suggested coronavirus might’ve accelerated the home workout trend, sure, but the sky-high percentage of monthly – rather than annual – subscriptions hinted customers might be poised to flock back to their gyms (tweet this). Still, the naysayers seem to be losing the argument for now: Peloton’s stock was up 34% this year before Thursday.

For you personally: If it’s good enough for you…
In a textbook example of how a brand can try to increase its customer appeal, Peloton’s planning to broaden its product range with a rowing machine and a cheaper treadmill. The company might be hoping that if it turns you into a die-hard customer, you’ll become an investor too. Warren Buffett, after all, reportedly invested in Coca-Cola because he liked the taste of the soft drink and figured others would too – making the business one he understood and, in turn, meeting one of his investment conditions.

Spot opportunities: Five steps to working out… if you should buy Peloton.

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2/3 Premium

Opportunity Knocks

What’s Going On Here?

Hot on the heels of Goldman advising against buying stocks, BlackRock – the biggest investment manager around – has joined JPMorgan in calls for investors to, well, go for it.

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3/3

License To Nil

What’s Going On Here?

The Bank of England (BoE) left the UK’s key interest rate unchanged on Thursday, but the central bank's governor has said he has a license to, er, cut it below zero if he has to.

What Does This Mean?

The BoE’s no more immune to the global economic uncertainty than anyone else, so it shied away from making predictions as it normally would. It instead outlined a scenario based on the assumption there’d be a gradual reduction in lockdown measures in the third quarter of this year. In that case, the unemployment rate would rise to 9% from around 4% now, and the UK economy would shrink by 14% in 2020 – its biggest decline on record – before rebounding with 15% growth in 2021.

While the BoE didn’t announce any new economy-supporting measures this time around, it did say it’s willing to do so if needed – even if that means turning the country’s record-low interest rates negative like elsewhere in Europe.

Why Should I Care?

For markets: That infrastructure, though.
BT might’ve welcomed some of that extra support: the British telecoms company announced on Thursday it’d be suspending its shareholder dividend for the first time ever as a public company. But while BT would rather use that cash to complete fiber infrastructure installation plans, its investors would probably prefer the payouts, hence its share price fell 8%. Adding insult to injury was the confirmation of the mooted merger between Telefonica and Liberty Global’s UK arms, which will give BT a new $38 billion rival.

For you personally: No news is bad news.
Low central bank interest rates lead to lower interest rates on your cash savings, which could encourage you to move your money into bonds or stocks to generate a higher return. But if you think you’ll need access to that money in the next couple of years, it’s probably worth suffering near-nothing interest in exchange for the certainty your cash will be there when you need it.

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“Start where you are. Use what you have. Do what you can.”

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🤜🤛 Another week, done

There’s still some way to go, but lockdowns may finally be starting to loosen for some of you. You’re on the home straight, just keep motivated with more Finimize events! More, we say!

🇦🇺 Australia: Financial Awareness During Tough Times – 7.30pm AEST, May 12th
🌍 Global: Finimize Live AMA – 1.30pm UK time, May 13th
🇦🇺 Australia: Financial Health Check During A Pandemic – 5.30pm AWST, May 13th
🇬🇧 UK: Investing in Brands During COVID-19 – 3pm UK Time, May 15th

📚 What we're reading

The galaxy’s biggest secrets are in… Alaska (Popular Science)
“What if – hear me out – we went into the table football market?” (Dazed)
Forecasting the future of the universe (Neal.Fun)

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Finimize - 🤭 The biggest recession ever

Today's big stories

Three, Two, One – Saddle!

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Opportunity Knocks

Your starter kit for the aftertimes

License To Nil

What’s Going On Here?

What Does This Mean?

Why Should I Care?

🤜🤛 Another week, done

Older messages

⚠️ UBS says don’t sell

📈 Whoa, Microsoft and Facebook

📉 Google's 4 billion dollar void

🤖 Big tech saves stocks

😨 JC Penney’s bankruptcy nightmare

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