GZV #38: Peloton = $250/share & a Spin On Education

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Let me introduce you to… Synthesis.

Note:

Not necessarily Gen Z focused company, but too interesting not to feature.

Website:

https://www.synthesis.is

Problem:

Kids nowadays are taught what to think and how to think through root memorization. This is not how the real world works.

Solution:

Synthesis’ platform allows students to be engaged and become world class problem solvers.

“The goal was to develop students who are enthralled by complexity and solving for the unknown.”

Gen Z View:

  • I have been in the public education system for 15 years now, and it is in need of change. School isn’t for everyone, some kids, like myself, love more thought provoking work, not just memorization.

  • I have always learned more outside the classroom than inside, this is because the problems I face in real life have many angles of attack where typical education only has one solution to a problem.

  • CON: My main concern with Synthesis is the social aspect of school. Some of my closest friends from my childhood I grew up with in the public education system.

Recommendation:

  • I would love to see these companies open “work centers” in large cities and charge lower prices than private schools. These work centers wouldn’t be a full school, just a place where kids could go to interact social about their classes.

Fundraising?

Just closed a private round. Unaware of current efforts.


Crazy Ideas: Peloton $250 a share.

So in my past life, I was big into the stock market. Nowadays, I am more of a passive investor with 2-3 big fundamental ideas a year. I have been bullish on Peloton since last March when I discovered it was more than a bike company.

Let me highlight a few headlines I’ve seen about the company in the past few days…

“Peloton purchased Atlas Wearables last year for an undisclosed sum along with companies Otari and Aiqudo that specialize in digital voice assistants and interactive workout mats”

“News: @Onepeloton acquires wearables, AI, and hardware companies. Bloomberg: "Peloton CEO John Foley suggested the company has a pipeline of new products and said a rowing machine and a strength training device are “good guesses” as to what the company is developing.”

“Peloton partners with Verzuz to bring the show to the platform.”

As a entrepreneur that merged with the mind of an investor, I love when I see companies be this active when it comes to their product. We all know the product is king and if you don’t have a good product, your company will likely fail. Peloton is proving that they are constantly chasing a better product. They didn’t stop at the bike or the treadmill, even though they could have and still made millions, they are going deeper.

With the acquisitions of companies that make wearables, AI, interactive workout mats, voice assistants and more, it seems that Peloton is building up a product line that could be 2-3 times bigger than the one it currently has.

We already know that Peloton can build great products by simply looking at the consumer attraction around their bike. They have built a cult of people who absolutely love the product and will be constant users. I never heard anyone trash Peloton, I really only hear a resounding love for the products. Along with the bike, Peloton also released an app with Digital class right before the beginning of the pandemic. I have a few friends who have used it and love it.

I have no doubt that any product that Peloton releases in the next year will be nothing short of amazing, because thats what they do. When they release new products, it isn’t half assed, it is a world-class product that, although expensive, is reliable and has an incredible user experience.

For these reasons, I am buying Peloton stock for $250 a share. In my opinion, Peloton is one in the top 5 in the world when it comes to product development. Apple is #1.

That is all.

Cheers!

Tom