over 2 years ago • 1 min
Exercise firm Peloton tumbled on Friday after cutting its projections for revenue, subscribers, and profit margins as users do fewer home workouts.
Peloton dropped as low as $57.20 in pre-market New York trading, a 34% decline from the previous close. The shares haven’t been that low since June 2020, although that price is still roughly double where the stock traded before the coronavirus pandemic hit.
The company cut its forecast for annual sales late Thursday to $4.4 billion from $4.8 billion. It had predicted as much as $5.4 billion in revenue less than three months ago. Subscribers’ average number of monthly workouts fell to less than 17 from more than 25 six months ago.
As Peloton feels the burn, traditional gym chains are racing ahead. Shares of Planet Fitness, a New Hampshire-based health club operator, climbed on Thursday after the company increased its forecasts for profit and revenue.
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