As Peloton heads to Australia, two market analysts break down the strategy

Peloton is heading Down Under. 

The fitness company announced plans to expand sales to Australia, its first inroad into the broader Asia-Pacific region, adding to the international presence it already has in Canada, the U.K. and Germany.

"I love the expansion. They're leveraging the network effect where they've [succeeded] where other fitness and hardware companies have failed, so I'm a big fan, I enjoy it. I use it, I own Peloton," Todd Gordon, founder of, told CNBC's "Trading Nation" on Tuesday.

Peloton's expansion into Australia is an interesting one given the country's small and isolated market that's moved closer than ever before to pre-pandemic normalcy. The product has gained mass popularity in the U.S. during the lockdowns.

John Petrides, portfolio manager at Tocqueville Asset Management, said the strategy makes sense.

"This has become a very competitive field for many different products. … It really is a first-mover advantage," Petrides said during the same segment. "Peloton is making their move to the APAC region, where they didn't have a presence prior, starting in Australia, trying to be first mover within that continent and to possibly do more of this segment exploration and R&D within the APAC region to grow its market share."

Peloton generates 93% of its revenue from the United States. Overall sales rose nearly 130% in its recent December-ended quarter.

"I think this is more about first-mover advantage rather than possibly moving the needle from a financial standpoint for the company," said Petrides.

Peloton has fallen 23% so far this year, but has surged more than 550% off its lows last March.

Disclosure: Todd Gordon holds shares in Peloton.


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