Interactive fitness platform operator Peloton Interactive, Inc. (PTON) in New York City provides connected, technology-enabled fitness and streams immersive, instructor-led boutique classes to its customers. The company also offers a portfolio of connected fitness products and related accessories. Shares of the fitness equipment have plunged 82.9% in price over the past year and 78.6% over the past six months because investors are shifting away from so-called pandemic trade. Furthermore, because the COVID-19 omicron variant is deemed less severe than previous variants, more countries are gradually easing their pandemic-related restrictions, which could further slow PTON’s pandemic- induced sales boom.
The stock’s sell-off was further fueled by its CEO’s comment that the company is reviewing the size of its workforce and “resetting” production levels. However, the CEO later clarified that the company is not halting its production but is instead planning to adjust production levels and improve its cost structure.
