Peloton Aims to Raise $1 Billion in Stock Offering

Summary: Peloton Interactive Inc. on Tuesday announced a $1 billion stock offering, just weeks after the maker of connected fitness equipment said it didnt need additional capital to weather wider-than-expected losses and slowing growth.

Questions:

1. What was the rationale provided by Peloton for its recent equity raising?
2. Discuss Peloton's cash position.
3. Discuss Peloton's growth strategy.
4. Why do share offerings often lead to a decline in a company's stock price?
5. Why did Peloton's share price react the way it did following its announcement of the equity raise?