Biker pro tip... Always splurge on the wheels. Peloton is dropping $420M on Precor, a stationary bike-maker. Precor's an unsexy combo of 625K-sq-feet of manufacturing space and 100 Research & Development employees — but the strategic purpose powered Peloton stock up 12% to an all-time high (get them a mid-ride shoutout, @Toussant).
"Biggest impediment to growth"... That's what one analyst calls Peloton's inability to make its own bikes to meet demand. We call it a hill. Peloton stock is already up over 400% in 2020, but "not-being-able-to-make-enough" is problem #1 (there's still a months-long backorder). With Precor, Peloton buyers will (ideally) not wait as long between bragging about ordering a new bike and actually riding it.
Peloton's unlocking the power of vertical integration... The ability for a brand to vertically integrate, owning its entire supply chain, can control success or failure. Direct-to-consumer icon Casper warned it isn't vertically integrated, leading to long mattress waits that result in lower sales. Peloton's splurging on vertical integration to avoid that.