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Why Peloton Dived by 4.2% on Thursday

TheMotleyFool

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Peloton Interactive (NASDAQ: PTON), the star fitness stock of 2020, continues to lose its shine this year. The stock fell by 4.2% today; the catalyst for the decline this time is the rising popularity of a potentially serious competitive threat.

Bloomberg reported Thursday that privately held Ergatta has garnered $30 million in fresh investment. This pushes the company's valuation to $200 million -- small compared to large-cap company Peloton, but considerable for a business that launched its product barely over one year ago.

Image source: Getty Images.

Source Fool.com

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