Why Peloton Stock Was Rallying Today
Shares of Peloton Interactive (NASDAQ: PTON) were soaring Tuesday for the second day in a row. The company dumped a heap of news on the market, including plans for an overhaul of the business, complete with a new CEO and president, changes to the board, 2,800 job cuts, and a new manufacturing strategy under which it will abandon its Peloton Output Park project and rely instead on third-party suppliers.
The connected fitness company also released its second-quarter earnings report early, offering guidance that was significantly worse than expected, which showed how urgently it needs to make changes.
The market was initially skeptical about the announcements: The stock was down by as much as 7% in pre-market trading at one point, but after opening flat, it quickly gained momentum and was trading up by 29% as of 1:17 p.m. ET.
Source Fool.com
