Peloton—Pandemic Stock Darling—Reportedly Halts Production Of Fitness Products, Shares Plunge Nearly 20%

The new date is Jan 20, 2022.

After reports that the company will temporarily halt production of its at- home fitness products as it looks to cut costs, shares of Peloton plummeted nearly 20% on Thursday.

Reports that the company would temporarily halt production caused it to lose nearly a fifth of its value.

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CNBC reported on Thursday that Peloton will temporarily stop making at- home fitness products.

The news caused the stock to plunge as much as 24% before it was trimmed back. The time is 11 pm.

According to internal documents reviewed by CNBC, the company will suspend production of treadmills for six weeks in February and then halt bike production for two months in March.

According to a report, the company said that demand for its at- home fitness equipment has seen a significant reduction around the world.

Thousands of bikes and treadmills are in the inventory of the at- home fitness equipment maker.

Forbes did not get a response from Peloton.

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The market cap of the company is now around $8 billion. A peak of $50 billion was reached in January 2021.
The key background is.

Peloton was once considered a stock market darling due to high demand from customers stuck at home during a crisis. After that banner year, the company's shares fell over 70% in 2021. The company had to slash prices for its exercise bikes and other products as people returned to the gym. In November of last year, Peloton saw its stock plunge after it reported lackluster third-quarter earnings and slashed sales forecasts.

After the market closes on February 8th, Peloton will report earnings. Wall Street analysts don't think that Peloton had a good holiday season.

It's called the Tangent.

A character in the Sex and the City movie died on-screen while riding one of the company's bikes. The negative press caused Peloton to release a parody commercial in response to Sex and The City.

Sex and the City is the least worrisome of Peloton's concerns.

Is the era of stay-at- home stocks over? Here is why the Peloton and others have fallen in value.

According to a report by Forbes, the hiring of new employees has been stopped as the shares of the company have fallen.

The CEO of Peloton is no longer a billionaire.