Peloton To Cease Bike Production, Shares Plunge

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A Peloton stationary bike sits on display at one of the fitness company's studios on Dec. 4, 2019, in New York City.

The long slump of Peloton (PTON) Interactive Inc. has continued into 2022. According to a report by CNBC, the exercise equipment company will cease production of its Bikes as consumer demand diminishes. 

Peloton has already ceased production of its higher-priced Bike+ in December and intends to do so for a few more months. It will suspend production of its Bikes from February to March. 

In a confidential presentation on Jan. 10, the New York-based company said it faced a “significant reduction” in demand for its products.

Chief Executive Officer John Foley conceded that the fitness company overvalued consumer demand, misreading the public’s desire to return to in-person gyms as COVID protocols eased nationwide. 

On Thursday, shares of Peloton closed at $24.22, down $7.62, or 23.93%.

Peloton had reported a net loss of $376 last quarter despite maintaining 92% of its subscribers over the year.

Shares of Peloton gained 440% due to the pandemic creating inevitable remote conditions. Shares later fell 76% in 2021 as vaccines were made available and restrictions alleviated.

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