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Trading halted in Peloton after production pause report

Pelaton stock halted

Peloton’s shares tumbled before trading was halted Thursday, after a report the fitness firm planned to suspend production of bikes and treadmills due to falling consumer demand.

Volatile trading struck the company’s share following a CNBC report, which cited internal documents and said Peloton would pause the making of its Bike product for two months.

The firm had already halted its more expensive Bike+ in December, and will do so until June, while treadmill production is to stop for six weeks from next month, the report said.

The stock was interrupted four times on New York’s Nasdaq, the last time around 1810 GMT, when the share lost more than 20 percent to about $25.

Peloton did not immediately respond to a request for comment.

The firm has been struggling to cope with waning demand after experiencing considerable growth during the pandemic.

Peloton shares have been under pressure since early November, when the company cut its forecast as more consumers return to gyms amid the reopening economy.

It also went on the counterattack last month after a plot twist in the “Sex and the City” reboot helped send its shares into a skid — bringing a key character on the show back to life in a parody ad.

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AFP

Agence France-Presse (AFP) is a French state-owned international news agency based in Paris. It is the world's oldest news agency, having been founded in 1835 as Havas.




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