Janice R. Andrews
The former wealthy CEO of Peloton, John Foley, has said that the company’s sharp drop in value has taken out all of his wealth. During the pandemic, Peloton was a big name in the exercise business. But as COVID-19 restrictions were lifted and people stopped wanting to work out at home, the company’s fortunes fell. Foley co-founded the company in 2012 and ran it for ten years. He now says he has lost all of his money and has had to sell most of his things.
Foley told the New York Post, “You know, at one point I had a lot of cash.” “Unfortunately, I’m not in the bank.” I lost all my money. In my life, I’ve had to sell almost everything.
The Rise and Fall of Peloton
During the worst of the COVID-19 pandemic, when people were working out at home, Peloton’s popularity shot through the roof. Its stock price went up over 400%, and sales went up by 250%. Peloton’s market value reached an amazing $50 billion, making Foley a millionaire what seemed like overnight. As the pandemic ended, though, more people went back to the gym and did things outside, which meant less demand for Peloton’s goods.
Peloton’s stock had dropped a lot by November 2021, and Foley’s net worth had gone down a lot as well. A month later, the first episode of the return of “Sex and the City,” “And Just Like That…”, came as a surprise hit. In one episode of the show, one of the main characters, Mr. Big, had a heart attack and died while riding a Peloton bike. He remembered, “We were leaving COVID.” The stock was falling fast. After that, Mr. Big did something terrible. All of a sudden, people were making fun of us, and everything fell apart.
A sharp drop in the economy and its effects
The effects of Peloton’s collapse were quick and bad. It was barely holding on to its unicorn status when Foley quit as CEO in February 2022. The company had been worth $50 billion at one point. Bloomberg says that by the time Foley left Peloton, his net worth had dropped from $1.9 billion to $225 million. Since then, Peloton has had another CEO come and go: Barry McCarthy. To deal with the problems that came up after the pandemic, the company has had to fire thousands of workers, raise prices, and close stores. The market value of the company is now only $1.8 billion, a small fraction of what it used to be worth.
Foley had trouble with money in areas other than his work life. The former CEO had to cut back on his personal life. He sold a $55 million waterfront home in East Hampton and moved his family to a new place. Even though things have gone wrong, Foley is still hopeful. The 53-year-old told the New York Post, “My family took it well.” “My wife is very helpful.” If we keep it real, my kids are probably better for it.
A Fresh Start: Foley’s Next Project
Foley has lost money, but he hasn’t lost his desire to be a business. He raised $25 million for his new business, Ernesta, a direct-to-consumer rug company, in less than a year after stepping down as CEO. Foley has high hopes for Ernesta’s future and thinks the business could make up to $500 million in free cash flow by 2030.
Foxy said, “I’m working hard to try to make money again…because I don’t have much left.” “So I’m hungry and ashamed.”
The False Nature of Wealth
Foley’s story shows how unstable paper wealth can be, especially when it is closely linked to stock prices. This doesn’t just happen to Foley. Ben Francis, founder and CEO of Gymshark and recently named Britain’s youngest billionaire, said that his wealth is “all on paper” and can change. “It could double or halve,” Francis said, adding that depending only on net worth to measure success is “a wildly unproductive way to live.”
Foley’s experience is a stark warning that money can disappear quickly, especially if it depends on the value of stocks. Foley is still dedicated to his new business and his family, even as he works hard to rebuild his wealth. He faces the tasks ahead with humility and drive.
Peloton, on the other hand, is still trying to get back on its feet after its big drop. Foley’s story is a warning about how unpredictable the market is and how dangerous it is to overestimate demand when things are unsure.
