Why Peloton Stock Plunged Today
Shares of Peloton Interactive (NASDAQ: PTON) plunged on Thursday after the company revealed that it's partnering with Dick's Sporting Goods to stock its exercise equipment in select stores. As of noon ET, Peloton stock was down 12%.
According to an official press release, Peloton's exercise hardware (minus its new rowing machine) will be available for sale at 100 Dick's Sporting Goods locations in time for the holidays. This is a massive shift for the beleaguered fitness company. Historically, Peloton has sold directly to consumers. By partnering with Dick's Sporting Goods, it's entering third-party brick-and-mortar retail for the first time.
Peloton shares were actually up briefly before the market opened on this news. The quick reversal indicates that investors aren't sure how to feel about it. On the one hand, increasing its physical retail presence makes sense for a business trying to move inventory. And Peloton is absolutely wanting to do that.
Source Fool.com
