Peloton Changes Prices (Again)

Peloton (NASDAQ: PTON) has been experimenting with price changes over the last year. Sales for its exercise equipment and subscriptions surged at the pandemic's onset when gyms were forced to shut their doors, and people looked for in-home exercise options. Its products were flying off the shelf with little need for advertising as the company could hardly keep up with demand and built up a monthslong backlog.

But the narrative has changed since economies started reopening. Sales growth decelerated dramatically, even with a significant boost in Peloton's marketing efforts. Management tried cutting prices to boost demand, but that mostly backfired as it reduced profit margins and sales hardly increased. The market has responded to the company's deteriorating prospects, driving its shares down more than 85% from their peak.