$PTON: Crash Mode Means No Production

$PTON investors were taken for a ride: The charts must be seen to show the carnage for this company which was an investor darling last year (there were several investment boards on Fool which were hot on this stock as well) and which was supposed to change the exercise category forever by gluing an iPad on top of expensive exercise bikes and treadmills.

There were guys with 20,000 to 200,000+ followers on Twitter, hawking their “premier” stock picking services who argued that $PTON would ever join a gym again after taking $PTON classes on that screen. Most all of these “gurus” have left Twitter and closed down their stock picking services.


Peloton is temporarily halting production of its connected fitness products as consumer demand wanes and the company looks to control costs, according to internal documents obtained by CNBC. Peloton plans to pause Bike production for two months, from February to March, the documents show.

It already halted production of its more expensive Bike+ in December and will do so until June. It won’t manufacture its Tread treadmill machine for six weeks, beginning next month. And it doesn’t anticipate producing any Tread+ machines in fiscal 2022, according to the documents.

Peloton had previously halted Tread+ production after a safety recall last year. The company said in a confidential presentation dated Jan. 10 that demand for its connected fitness equipment has faced a “significant reduction” around the world due to shoppers’ price sensitivity and amplified competitor activity.

See my $PTON charts in this thread on Twitter: