Peloton Interactive Inc. shares plummeted as much as 27% Thursday on a report that it’s temporarily halting production of bikes and treadmills, the latest sign that a star of the pandemic has lost its shine.
Production of Peloton’s main stationary bikes will be paused for two months, CNBC reported, citing internal documents. And the company will stop making its treadmill machine for six weeks, starting in February, the news outlet said.
The move represents a shocking turnabout for a company that couldn’t keep up with demand during the height of the pandemic, when stuck-at-home consumers snapped up its bikes. As life begins to return to normal in many parts of the world, customers’ appetite for home fitness has waned. Peloton slashed its sales forecast in November, sending the stock on its worst rout ever.