Peloton stock tumbled roughly 25% Thursday after CNBC reported that the company would halt production of its signature connected bikes and treadmills amid slowing demand.
Citing internal documents, the news outlet said the company would pause production of its Bike for two months starting in February. It will extend an earlier production freeze on its more expensive Bike+, and it won’t produce its Tread treadmill for six weeks, CNBC reported.
By midafternoon, Peloton clawed back some losses and was trading near $27 a share, down 15%.
Peloton bought Woodinville-based fitness-equipment company Precor earlier this year in a $420 million deal.
Peloton was among a cadre of fitness-minded companies that benefited in the early days of the pandemic as consumers looked for new ways to work out at home. But the company has struggled in recent months as more Americans head back to the gym.