$(PTON)$ stock took a massive hit on Friday, tanking 35% in a day, with an additional 1.2% in downside in the after hours. Undoubtedly, the quarterly earnings results fell short of expectations, with a wider-than-expected loss alongside a reduced full-year outlook.
Indeed, Peloton stock is backpedalling in a hurry, surrendering a considerable chunk of the gains posted in the back half of 2020, as consumers opt to return to the gyms over cycling or running at home. As the COVID-19 pandemic moves endemic, the trend is certainly not a friend of Peloton.
To add even more salt to the home fitness equipment maker’s wounds, the company’s treadmill, the Peloton Tread, is attempting to repair its reputation after horrific recalls that caused Peloton shares to initially tread water. Despite the return of the Tread and the recent round of favorable reviews, it will be even tougher for Peloton to repair the product’s tarnished reputation amid mounting headwinds.
Undoubtedly, there isn’t much to look forward to with shares of PTON. It’s not just reopening headwinds that could weigh on the company, either. The industry is starting to get a bit more crowded, and I’m not sure the company will be able to pull the brakes on its horrific decline that could continue into year’s end.