Why Peloton Interactive Has Fallen This Week
Not even an activist investor calling on Peloton Interactive (NASDAQ: PTON) to fire its CEO and sell the company was enough to stop the connected-fitness guru's stock from falling this week. Shares of the treadmill and stationary exercise-bike maker are down 11.6% from where they closed last Friday, according to data from S&P Global Market Intelligence, as there apparently aren't any takers who want to buy the company because it's in such disarray.
It's been one bad-news cycle after another for Peloton after it reported a fiscal second-quarter earnings update that showed demand for its exercise equipment has been quickly evaporating. Sales growth has dramatically slowed, and if these negative trends on engagement continue, that will be on a downward trend, too.
It was also reported Peloton was shutting down production because it couldn't find anyone who wanted to buy their machines in sufficient quantities. While the company denied that report, it did say it was considering mass firings, something it had previously said would only be a last-resort option.
Source Fool.com