Peloton stock plunges after report of temporary production halt
Peloton stock tumbled nearly 25% Thursday after CNBC reported that it would halt production of its signature connected bikes and treadmills amid slowing demand.
Citing internal documents, the news outlet said the company would pause production of its Bike for two months starting in February. It will extend an earlier production freeze on its more expensive Bike+, and it won't produce its Tread treadmill for six weeks, CNBC reported.
Peloton shares closed at $24.22, down 23.93%. The company did not immediately respond to a request for comment from the Washington Post.
Peloton was among a cadre of fitness-minded companies that benefited in the early days of the pandemic as consumers looked for new ways to work out at home. But the company has struggled in recent months as more Americans head back to the gym.