How Peloton Can Pull Itself Out of a Deep Ditch (Repeat)
The fitness company’s shares have tumbled 90%, and few believe it can survive on its own. Bloomberg Opinion columnists offer some ideas on how it might not just rebound but thrive.
Turning around Pelton won’t be easy.
Photographer: Michael Loccisano/Getty Images
(This column was originally published on May 18. Today, Peloton Interactive Inc. said it will stop building bikes and treadmills at its own factories and rely on partners for manufacturing as part of an effort to simplify operations, reduce costs and revive a stock price that has tumbled 94% since January 2021.)
Few companies represent the pandemic era more than Peloton Interactive Inc. The fitness company's stationary bike connects users virtually with other riders and instructors, making it a must-have accessory during the Covid-19 lockdowns. Peloton shares surged from about $20 in early 2020 to almost $170 in January 2021. But then the development of Covid-19 vaccines and therapeutics allowed consumers to leave their homes again. Peloton was slow to adapt, and its revenue suffered. Its shares have fallen 90% since peaking, dropping to a low of about $12 earlier this month.