Peloton's Fee Flip-Flop Doesn't Bode Well
Peloton Interactive (NASDAQ: PTON) stock hit new lows this month as investors pulled their money out on fears about its growth prospects and profitability. It's down more than 80% over the past year after the price shot up following a year of triple-digit growth and then crashed as growth decelerated and management warned of a further slowdown.
A series of announcements last week added the next chapter to the saga. The company said it would be tacking on high delivery and setup fees for its bikes just a few months after slashing the price of its standard bike to open it up to a broader market. The stock price went up after the raise was announced, but it plummeted the next day when word got out that the company was slashing production, and it gave a preliminary update on discouraging fourth-quarter results.
Image source: Peloton Interactive.
Source Fool.com
