Peloton Recall Tests Analyst Devotion as Stock Slump Deepens
- Treadmill recalls set to overshadow Thursday’s earnings report
- Peloton shares have fallen more than 50% from a January record
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Peloton Interactive Inc.’s earnings report on Thursday was supposed to be the company’s chance to show off faster product deliveries. Instead, the equipment-maker finds itself in a tight spot over treadmill recalls that has investors second-guessing their devotion to a foundering stock.
After weeks of pushing back against U.S. regulator warnings about Peloton’s treadmills following the death of a child and other safety incidents, the recall jarred traders and even prompted a rebuke from a senator. The stock sank 15%, the most in six months, as investors considered the costs in addition to potential knock-on effects that could threaten sales growth.