Check out the brutal slide deck that a major Peloton investor published eviscerating CEO John Foley, right before he announced his resignation

Dominick ReuterFeb 9, 2022, 04:35 IST

Getty; Marianne Ayala/Insider

Peloton cofounder John Foley unexpectedly announced his resignation as CEO on Tuesday.
Before that, Peloton investor Blackwells Capital published a scathing assessment of the company.

In a surprise move, Peloton cofounder John Foley abruptly resigned as CEO on Tuesday.

Peloton CEO John Foley in 2019.Matt Winkelmeyer/Getty Images

Before his announcement however, Blackwells Capital published a presentation calling on the company to make drastic changes.

Blackwells Capital

The deck starts by pointing out that Peloton had the worst 2021 performance in the Nasdaq 300 by a wide margin.

Blackwells Capital

Still, Blackwells says the company Foley built does have several key advantages...

Blackwells Capital

... but the financial performance of the company doesn't live up to its potential.

Blackwells Capital

The dismal stock price chart is followed by a quote from Foley that paints him as out of touch with reality.

Blackwells Capital

Blackwells doesn't mince words.

Blackwells Capital

It attributes Peloton's performance problems to five key themes – all of which it ties back to Foley.

Blackwells Capital

"I'll go sometimes months without talking to our CTO," Foley told Time Magazine in May 2020.

Blackwells Capital

"We haven't seen any softening of demand," he told investors on Peloton's earnings call one year ago.

Blackwells Capital

"I don't know," Foley said when asked about making a more affordable Bike.

Blackwells Capital

As Insider reported, softening demand was leading to a buildup of inventory with warehouses resembling "jigsaw puzzles."

Blackwells Capital

The presentation also depicts Foley as "irresponsible" in his handling of an incident involving the death of a child.

Blackwells Capital

Foley's $431 million purchase of Precor also indicated poor judgement, Blackwells said.

Blackwells Capital

The deck also raises questions of nepotism due to Foley's wife Jill running Peloton's apparel business. It was also announced on Tuesday that Ms. Foley would "transition away" from the role.

Blackwells Capital

The deck also raises questions of nepotism due to Foley's wife Jill running Peloton's apparel business. It was also announced on Tuesday that Ms. Foley would "transition away" from the role.

One chart contrasts Foley's statements to investors with his selling of almost $100 million of Peloton stock as the price continues to fall.

Blackwells Capital

Foley's stock pledges also appear to violate Peloton's insider trading policy, according to Blackwells.

Blackwells Capital

The deck highlights other past quotes from Foley depicting lofty – perhaps unrealistic – goals for the company, calling it "promotional puffery."

Blackwells Capital

Meeting Foley's goals would require an annual growth rate of 30% for the next 15 years, compared with 5% in the previous quarter.

Blackwells Capital

Blackwells even takes a shot at Peloton's choice of management consultancy: "Hiring McKinsey is a clear declaration of failure."

Blackwells Capital

Blackwells recommends several urgent actions, most notably: Fire CEO John Foley.

Blackwells Capital

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Check out the brutal slide deck that a major Peloton investor published eviscerating CEO John Foley, right before he announced his resignation

In a surprise move, Peloton cofounder John Foley abruptly resigned as CEO on Tuesday.

Before his announcement however, Blackwells Capital published a presentation calling on the company to make drastic changes.

The deck starts by pointing out that Peloton had the worst 2021 performance in the Nasdaq 300 by a wide margin.

Still, Blackwells says the company Foley built does have several key advantages...

... but the financial performance of the company doesn't live up to its potential.

The dismal stock price chart is followed by a quote from Foley that paints him as out of touch with reality.

Blackwells doesn't mince words.

It attributes Peloton's performance problems to five key themes – all of which it ties back to Foley.

"I'll go sometimes months without talking to our CTO," Foley told Time Magazine in May 2020.

"We haven't seen any softening of demand," he told investors on Peloton's earnings call one year ago.

"I don't know," Foley said when asked about making a more affordable Bike.

As Insider reported, softening demand was leading to a buildup of inventory with warehouses resembling "jigsaw puzzles."

The presentation also depicts Foley as "irresponsible" in his handling of an incident involving the death of a child.

Foley's $431 million purchase of Precor also indicated poor judgement, Blackwells said.

The deck also raises questions of nepotism due to Foley's wife Jill running Peloton's apparel business. It was also announced on Tuesday that Ms. Foley would "transition away" from the role.

One chart contrasts Foley's statements to investors with his selling of almost $100 million of Peloton stock as the price continues to fall.

Foley's stock pledges also appear to violate Peloton's insider trading policy, according to Blackwells.

The deck highlights other past quotes from Foley depicting lofty – perhaps unrealistic – goals for the company, calling it "promotional puffery."

Meeting Foley's goals would require an annual growth rate of 30% for the next 15 years, compared with 5% in the previous quarter.

Blackwells even takes a shot at Peloton's choice of management consultancy: "Hiring McKinsey is a clear declaration of failure."

Blackwells recommends several urgent actions, most notably: Fire CEO John Foley.