During the pandemic, Peloton was the undisputed king of the at-home workout world. The brand became as much of a status symbol as a country club membership, and its CEO, John Foley, was comfortably sitting on a nearly $2 billion fortune. 

But as the saying goes, what goes up must come down—sometimes faster than you'd expect. Just ask John Foley, who recently opened up about how he went from billionaire to broke in what felt like the blink of an eye.

(Source: Business Insider)

Let’s rewind to the peak of the pandemic, when people were buying Peloton bikes like they were toilet paper. Sales skyrocketed by 250%, and Peloton’s stock shot up more than 350%.

For a while, it looked like Foley and his company could do no wrong. They were riding high, with Peloton’s market value hitting $50 billion. Foley, the co-founder and face of the company, became a billionaire practically overnight, with his net worth topping out at $1.9 billion.

But as the COVID clouds began to lift and people remembered that they could, in fact, go outside to exercise, Peloton’s fortunes took a dive—much like the company’s stock. By November 2021, Peloton’s share price had plunged by over 70% from its all-time high, and the company’s market cap had shrunk by a staggering $35 billion. And along with it, Foley’s billionaire status vanished.

In a recent interview, Foley didn’t mince words about his financial fall from grace. "You know, at one point I had a lot of money on paper," he told the New York Post. "Not actually [in the bank], unfortunately. I’ve lost all my money. I’ve had to sell almost everything in my life."

And sell he did. Foley had to offload his $55 million East Hampton waterfront mansion and downsize not once, but twice. "My family took it well," Foley quipped. "My wife’s super supportive. My kids are probably better for it, if we’re keeping it real." Well, that’s one way to put a positive spin on losing your fortune.

(Source: Wall Street Journal)

But let’s not forget one of the wildest twists in this tale of rags to riches riches to rags: the infamous Sex and the City reboot. In December 2021, the premiere episode of And Just Like That... featured a plotline where Mr. Big, a beloved character, has a heart attack and dies—while riding a Peloton bike. 

(Source: Daily Mail)

Talk about bad press. Foley reflected on the moment, saying, "We were coming out of Covid. The stock was getting crushed. And then the Mr. Big thing happens… it was brutal. All of a sudden, we were just being trolled… everything was collapsing."

The company, which was once worth $50 billion, now clings to a market cap of around $1.8 billion. Foley, who was once sitting on nearly $2 billion, saw his net worth crash down to a relatively modest $225 million by the time he stepped down as CEO in February 2022. 

(Source: Business Insider)

And that was just the beginning of Peloton’s rocky road. The company has since churned through another CEO, laid off thousands of employees, hiked prices, and shuttered retail stores in a desperate bid to regain its footing.

As for Foley, he’s not wallowing in self-pity. Instead, he’s channeling his energy into a new venture, a direct-to-consumer rug company called Ernesta. He’s already raised $25 million for the project and is aiming high, with hopes of hitting $500 million in free cash flow by 2030. "I’m working hard so that I can try to make money again…because I don’t have much left," Foley admitted. "And so I’m hungry and humble."

(Source: New York Post)

Foley’s story is a real wake-up call that being a billionaire—especially when it’s all tied up in stock—is just a status symbol until you’ve got the cash in the bank. One minute, you’re living large, and the next, you’re scrambling to sell off your mansion and figure out what’s next.

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