Peloton shares slipped premarket on news Apple planning exercise video subscription service
Cari Gundee rides her Peloton exercise bike at her home on April 06, 2020 in San Anselmo, California. More people are turning to Peloton due to shelter-in-place orders because of the coronavirus (COVID-19).
Ezra Shaw | Getty Images
Peloton shares dropped more than 4.5% in premarket trading Thursday on a report that Apple is working on a subscription service for digital fitness classes.
Shares recouped the losses after the markets opened.
Apple plans to offer virtual workouts via an app for the iPhone, iPad and Apple TV, Bloomberg reported Thursday. Apple’s move is part of a broader effort to launch new subscription plans that bundle several of its services, including Apple News+, Apple Arcade, Apple Music and others.
Apple declined to comment on the Bloomberg report.
It’s a direct threat to both Peloton and Nike, which offers the virtual training app called Nike Training Club. It’s also one example that highlights Apple’s potential anticompetitive behavior. Developers have complained that Apple emulates their software and then introduces it as new features in iPhones and other products.
A Peloton spokeswoman did not immediately respond to a request for comment.
Peloton, which has seen heightened demand in its at-home spin bikes and treadmills due to the pandemic, has also reported growing engagement. Its app is available to anyone, regardless of whether or not they purchase equipment.
The company reported in its third quarter 2020 earnings that it ended the quarter with 176,600 paying Digital Members, up 64% year-over-year.
