In this video recording, from “ Beat & Raise, ” recorded on Dec. 10, Fool contributors Demitri Kalogeropoulos and Rachel Warren discusses the slowdown and what it might mean for the growth stock .
Demitri Kalogeropoulos: Let me cover this interrogate about Mirror. That ‘s a good question. mirror was this ship’s company that they bought I think late 2019. I do n’t know if you ‘ve seen a painting of it. actually cool, or seen in the product in use. It ‘s this wall mirror that you can do workouts in front man of and it ‘s a digitally immersive exercise experience with projected stuff onto the mirror. It ‘s perplex to see and it ‘s in truth cool because they were getting into that digital workspace. It was n’t indeed good news in that see. management did reduce their mentality for Mirror not by a whole lot, and again, it ‘s merely a little separate of their businesses. It ‘s something like 3 % of annual tax income.
They did lower their expectations. It ‘s not a truly bang-up market right immediately. This particular niche, digital workouts for some reason I think people are just, I do n’t know. But you see with Peloton and companies like this, they ‘re not getting anywhere near angstrom much engagement as they did last year. That ‘s not actually the case for Mirror, but the industry does n’t seem to be growing equally cursorily as it was. Who knows why .
The best explanation and the most obvious, I guess, is that people are a little run down of all this niche I guess after being in the pandemic and being stuck at base and doing the workouts. It ‘s a bunch of why we ‘re seeing people return to stores for shopping a little moment more. The pendulum swinging all back in the early direction of in-person workouts and gymnasium sessions.
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Mirror is n’t a runaway achiever at the here and now, but management is just angstrom excited as they were when they bought it in terms of the long-run potential but it ‘s just not going to blow the lights out in 2021 .
Rachel Warren: I always thought that was the intrigue separate of their business and I ‘m surprised it has n’t been quite the increase trajectory investors have been hoping as things reopen and I do think you have this middle ground of people that are still home and working from base, but I think besides people actually want to get out and meet people again and we know that going to the gymnasium, for example, is one way to do that. I guess it ‘s not actually storm that we ‘re seeing a bite of a downturn in that particular area .
