Why Peloton Stock Continues to Drop
Shares of Peloton Interactive (NASDAQ: PTON) continued a slide today that has clipped about 13% off its stock price in the last week. Shares dropped another 4% as of 11:30 a.m. EDT Wednesday, as the company continues to push back against calls to recall its treadmills over a safety question.
Peloton became a stock market favorite as a stay-at-home play during the pandemic with consumer demand exploding for its indoor exercise bikes and treadmills along with an online subscription trainer app. The company introduced its first treadmills in 2018, but this March Peloton CEO John Foley sent an email to owners of the company's Tread+ after an accident involving the equipment resulted in a child's death. Foley stressed the safety warnings that come with the equipment, including keeping children and pets away from the equipment, and removing the safety key when not in use.
Image source: Peloton Interactive.
Source Fool.com
