Peloton to Halt Production of Its Bikes, Treadmills as Demand Wanes

The company said in a confidential presentation dated Jan. 10 that demand for its connected fitness equipment has faced a"significant reduction" around the world due to shoppers' price sensitivity and amplified competitor activity.

Peloton's shares fell more than 20% on the news, bringing the stock's market value to $8.3 billion and hitting a 52-week low of $23.25 before trading was halted. Peloton also said it has seen low email capture rates for the upcoming debut of its $495 strength training product,, which is codenamed"Project Tiger" in internal documents viewed by CNBC. Email capture rates keep track of the number of people who enter their email addresses on Peloton's website to receive information on the product. The company said this is a signal of"a more challenging post-Covid demand environment.

In recent months, though, gyms have reopened and consumers don't appear to be throwing as much money into at-home fitness equipment. At the end of its latest quarter, Peloton counted 2.49 million connected fitness subscribers. It only added about 161,000 net new members in the period ended Sept. 30, its lowest growth in two years.

laurenthomas Who ever could have predicted this

laurenthomas Why don’t they try lowering the prices?

laurenthomas I hope not because I need the treadmill

laurenthomas I see you RETWEETED THIS within the last hr (meaning AH was closed), effectively doubling down that this is IN FACT TRUE & NOT a rumor. Can you please give us an official confirmation your info is credible? THX IN ADVANCE cnbc pton $pton

laurenthomas Now what? Is it lie’s or is $PTON full of BS?

laurenthomas This Just In: Americans don’t want to pay $1300 for a treadmill any longer. Thank you and have a happy and healthy new year!

Expensive paperweights

All the rich people have theirs and the poor people can't afford them, so yeah this makes sense.

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