The New York Stock Exchange has traders on it.
Spencer Platt is a photographer.
The stock price of Peloton fell from its record high and is set to be kicked out of the index.
The connected-fitness company was added to the tech-heavy index in December of 2020 and will only have been in it for 13 months. After it was added to the index, its market cap hit $48 billion. It is worth about $11 billion today.
The surge in business was caused by closed gyms and consumers flocking to home-exercise products. The demand for the bikes was so high that the delivery time was delayed.
The company's ability to meet the high influx of orders was limited because of supply chain disruptions. Concerns about demand in a post-pandemic world, a product recall for its treadmill, and a pivot from the Federal Reserve have contributed to the stock's decline.
The market will open on January 24th and Old Dominion Freight Line will replace Peloton. The changes will affect the Nasdaq 100, the Equal Weighted Index, and the Ex- Technology Index.
The swap between Old Dominion and Peloton shows the rotation in the stock market, as value stocks become the preferred holding for investors concerned about rising inflation, higher interest rates and the Fed's indication that it plans to shrink its balance sheet.
The index change announcement caused shares of Peloton to fall.
Business Insider has an original article.
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