The long slump of Peloton (PTON) Interactive Inc. has continued into 2022. According to a report by CNBC, the exercise equipment company will cease production of its Bikes as consumer demand diminishes.
Peloton has already ceased production of its higher-priced Bike+ in December and intends to do so for a few more months. It will suspend production of its Bikes from February to March.
In a confidential presentation on Jan. 10, the New York-based company said it faced a “significant reduction” in demand for its products.
Chief Executive Officer John Foley conceded that the fitness company overvalued consumer demand, misreading the public’s desire to return to in-person gyms as COVID protocols eased nationwide.
On Thursday, shares of Peloton closed at $24.22, down $7.62, or 23.93%.
Peloton had reported a net loss of $376 last quarter despite maintaining 92% of its subscribers over the year.
Shares of Peloton gained 440% due to the pandemic creating inevitable remote conditions. Shares later fell 76% in 2021 as vaccines were made available and restrictions alleviated.
