Shares of connected fitness company (NASDAQ: PTON) were gutted on Wednesday following a disastrous quarterly report. Demand for its exercise bikes tumbled, subscription churn was higher than expected, and a major seat-post recall turned out to be far more expensive than the company anticipated.

That recall is particularly problematic. Peloton's brand was tarnished in 2021 by incidents with its treadmills that led to one death and dozens of injuries. The latest recall -- in which seat posts could snap off while in use -- affected the company's original Peloton Bike product sold in the United States. There had been 13 reported injuries when the recall was announced in May of this year.

While Peloton, the company, is in no danger of failing anytime soon, buying the stock is tough to justify.

Continue reading

Source Fool.com