Why Peloton Interactive Was Falling 8% This Morning
Shares of Peloton Interactive (NASDAQ: PTON) were tumbling almost 8% lower in morning trading Wednesday after the high-end home fitness equipment maker announced it is recalling all its treadmills.
There were actually two different recalls initiated. Peloton is recalling its Tread+ treadmill after a child was killed and over 70 other injuries, including of pets, were reported due to people and animals getting pulled underneath the moving treadmill. A video of one child getting dragged under a Peloton treadmill recently went viral on social media. About 125,000 Tread+ units are being recalled.
The second recall involves Peloton's Tread, its lower-cost treadmill, due to reports of the device's touchscreen possibly detaching during use and falling, increasing the risk of injury. About 1,050 Tread units are subject to the recall.
Source Fool.com
