 Welcome traders to another Ticknell earnings report preview with me Patrimonally before jumping to today's report It's important that we adhere to the risk disclaimer Material provided is for information purposes only and should not be considered as investment advice Views information opinions expressed in this recording are solely mine And they're not indicative or representative of those held by Ticknell UK or Ticknell Europe limited Okay, let's jump into today's report We're looking at Peloton due to release before the open in New York today looking for earnings per share of 83 cents on revenue of 976.12 million Would highlight that there is a whisper number on the street that the EPS could print as high as 92 cents per share obviously Peloton was one of the hottest names in the Fitness during the pandemic with more than 6.2 million members peloton stock was one of the brightest spots in the Coronavirus stock market rally share saw a gain of one 440% in 2020 but after reaching a peak in January 2021 Peloton stock has been on a steep downhill ride and The future of the company remains uncertain in the wake of layoffs and reported takeover rumors By out buzz recently has seen shares become a little bit more volatile Peloton generates most of its revenue through sales of bikes and treadmills which range of price from $1,895 to $4,295 the all-access membership for its owners Of its expensive equipment runs at $39 a month a digital membership with no access to the bike or tread classes is 1299 a month, but to determine peloton starting by right now. It's really key to analyze the Potential changes that are coming in peloton's plans With respect to pricing structure for the equipment and the subscription program the company will increase the cost of subscriptions for peloton Interactive platform starting in June those monthly memberships will jump from $39 to $44 The increase in the connected fitness app follows a cut in price for peloton's bikes and treadmill equipment peloton bikes will now cost 1445 instead of the 1745 the treadmill will retail for 2695 instead of the 2845 level analysts say the price changes could lower the barrier of entry for peloton equipment and Stabilize the company's earnings over the long term So let's take a look at what we can glean from the statistical training patterns for peloton Peloton shares have moved lower in the immediate aftermark of earnings seven out of ten previous reports on average the stock moved down 3.2% in the first day of trading after the company's reported earnings based on the previous ten earnings Releases peloton is more likely to trade lower one day after earnings from average loss of 3.2 Cent on average the stock has moved lower by 1.1 percent one week after earnings In terms of what the options market is pricing from a volatility perspective Options traders are pricing in a 23.9 percent move on earnings stocks average a 12.7 percent move in recent quarters from a flow and sentiment perspective is noteworthy that April the 21st there was some notable buying 1267 contracts of the $35 call bullish expiring Friday September 16th this year options order flow sentiment in general has also been published investor sentiment going into the company's earnings release Has 19 percent expecting an earnings beat the company's guidance was revenue of 950 million Consent assessments are for earnings to decline year-over-year by 2666% with revenue decreasing by 22.67 percent Short interest has decreased by 13.2% since the company's last earnings release While the stock has actually drifted lower by 48% from its open following its prior earnings release to be 72.6% below its 200 day moving average of $57.23 So let's take a look at the charts now and see where they might be some technical trading opportunities It's noteworthy that obviously we have witnessed the very steep decline here And we are printing new all-time lows in the stock But this is being accompanied by a potential wedge pattern developing here So I'm looking for any pop down into the $12 level much for bullish reversal patterns to engage on the long side Look for us to trade up through the descending wedge Resistance into the high volume mode at $26.20 and then I'm looking for that move up through that $35 call level and get a retest these prior highs here at $39.79 however, if the earnings come in weak and The market responds negatively any move through $10.00. I would be short the stock looking for a move down to test the $5.76 to $5.47 level as the next downside objective As always traders plan the trade trade the plan and most importantly manage your risk until next time. Thanks very much