Why Peloton Stock Dropped Today
Shares of Peloton Interactive (NASDAQ: PTON) sank on Tuesday after the exercise equipment maker warned investors that its growth was slowing. As of 2:37 p.m. ET, Peloton's stock price was down more than 8% after falling as much as 20.4% earlier in the day.
Peloton's subscription revenue jumped 55% year over year to $369.9 million in its fiscal third quarter, which ended on March 31. The company ended the quarter with 2.96 million connected fitness subscribers. These are people who have purchased a Peloton bike or treadmill and pay a monthly fee to attend its virtual exercise classes.
However, Peloton's connected fitness products revenue declined by 42% to $594.4 million. With COVID-19 case counts moderating, more people are returning to gyms and fewer people are now buying the company's in-home exercise equipment.
Source Fool.com
