Peloton Was Winning and Blew It
The home-fitness brand was the star of lockdowns until a safety recall exposed its weaknesses.
The Tread recall might not do much to disrupt the home workout trend, but it may make some think twice about joining the Peloton club.
Photographer: Ethan Miller/Getty Images North AmericaPeloton, you blew it.
The undisputed king of home workouts is initiating a safety recall of all its treadmills following reports and videos of children and pets getting sucked underneath the Tread+. In one instance, a 6-year-old died. The Tread, a cheaper version of the machine, is also being recalled because the mounted touchscreen sometimes detaches and falls off. Shares of Peloton Interactive Inc. — which beat every stock in the Russell 1000 index last year except Tesla Inc. and Enphase Energy Inc. — plunged 13% Wednesday to their lowest price since September. Its market capitalization peaked at $49 billion in January, but is now down to $24 billion.