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Peloton Slumps After Reportedly Halting Bike, Treadmill Production as Demand Wanes -Breaking

by Mike Robinson

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© Reuters

By Yasin Ebrahim

Investing.com – Peloton plunged below its initial public offering price Thursday as the company is reportedly planning to stop production of connected fitness products amid waning demand, CNBC reported, citing internal documents.

Peloton Interactive’s (NASDAQ:), fell 20% to $24.02, a significant drop from its initial $29 per share.

Peloton will stop production for its bicycles in February and March. This was reported by CNBC, who cited the documents. Just a month ago, the company had stopped production of its Bike+ model in December and June.

Manufacturing of the Tread treadmill machine will also be halted for six weeks, beginning in February, while production of the more expensive Tread+ machines won’t be resumed in fiscal 2022, according to the documents, the report said.

 

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