Sam Boughedda

Peloton Interactive (NASDAQ) – Investing.com stock rose, then fell Thursday afternoon following a report from Bloomberg that said the connected fitness company is cutting hardware prices but upping the cost of its subscription.

Bloomberg’s Mark Gurman stated that Peloton would reduce the price of three major hardware products.

Peloton will reduce its original bike by $300 and make it $1,195. The Bike+ will drop by $500 and go to $1.995. Its treadmill will also be discounted to $1,195 from the initial price, and its Bike+ cost will fall by $500 to $1,995.

According to the article, they stated that their company wants more people to have access to their hardware. They also said it was a strategic move to increase market share and scale.

Gurman stated that Peloton would also increase its monthly subscription fees from $39 to $44 US, and $49 to $55 Canada.

Peloton stock hit a record high of $26.50 at its peak, however it has fallen 5.3% to $23.70 by the time this article was written.