Peloton stock tanks on report of production halt

Peloton stock fell by as much as 25% on Thursday, following a CNBC report that the connected fitness company will temporarily halt production on its bikes and treadmills.

Why it matters: Peloton is viewed by many as a proxy for consumer behavior in the pandemic era, as its popularity surged when gyms closed and people wanted to exercise at home.

  • The company, which is scheduled to report earnings on February 8, has not yet publicly responded to the CNBC report.

The big picture: Peloton shares hit an all-time high of $151.72 per share in December 2020, giving it a $45.7 billion market value. Today they opened at $32.05 per share, for a $9.7 billion market cap, before the CNBC report and subsequent price decline.

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The Article Was Written/Published By: Dan Primack

Author: axios