Peloton’s stock skids lower, following report it will pause production of bikes, treadmills
Shares of Peloton Interactive PTON,
Citing confidential internal documents, CNBC reports that the company is reducing its forecast for demand and cutting production, as it aims to control costs.
Shares of Peloton were down sharply on Thursday and has been halted twice during the session so far, following the report. The company made its debut on the Nasdaq Inc. NDAQ,
The stock has now lost more than 70% over the past three months, and has plunged 84% since closing at its post-pandemic peak of $167.42 on Jan. 13, 2021. The company had gotten a boost from COVID, as lockdowns to limit the spread of the deadly virus took hold in the spring of 2020, and consumers purchase equipment for at-home gyms.
Peloton is set to report its quarterly results on Feb. 8.
The company is known for its exercise Bike, Bike + and Tread equipment, which works in conjunction with its subscription service.
The CNBC report comes as Peloton executives have recently said it is adding $250 and $350 in delivery and set-up costs to its original Bike and Tread, respectively. Peloton pegged the price increases to supply-chain costs.
