Why Peloton Stock Got Beat Up on Wednesday
Typically, when a company announces that it has opened new sales and/or distribution channels for its goods, its investors react positively. That wasn't the case with Peloton Interactive (NASDAQ: PTON) on Wednesday, however. Shares of the once-popular exercise equipment maker fell by nearly 8% on the day after it announced an expansion of an existing distribution deal.
Before market open, Peloton divulged that it is expanding its partnership with mighty retailer Amazon (NASDAQ: AMZN). Peloton's exercise equipment is now available for purchase at Amazon's online store in the U.K., and will start appearing in listings for the online retail giant's Germany site "in the coming weeks," Peloton said.
The company's exercise bikes are shipped unassembled. As with the U.S. Amazon site, though, customers in mainland U.K. -- i.e., everywhere but Northern Ireland -- buying through the online retailer will have the option of "expert" on-site assembly, which is offered free of charge. Peloton didn't mention whether German consumers will have the same choice.
Source Fool.com
