Shares of the exercise equipment company  (NASDAQ: PTON) traded roughly 12.3% lower as of 11:33 a.m. ET today after analysts at Morgan Stanley put out a note suggesting that the company saw lower web traffic during its third fiscal quarter.

In a research note, Morgan Stanley analyst Lauren Schenk said that web traffic for Peloton fell roughly 27% in its third fiscal quarter on a year-over-year basis, largely because it didn't have the same amount of promotional spend as it did during its second fiscal quarter. Schenk did, however, say that the company typically sees more turnover among customers a few months after they launch a Peloton subscription.

"The company struggled to maintain the momentum observed during the heavily promotional holiday season," Schenk said. "Although web traffic is still above pre-COVID levels, the 2-y/y trends have continued to deteriorate, failing to find the stability needed for a return to growth, in our view."

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Source Fool.com