Peloton CEO denies report it’s halting production after stock plunged 25%

SIMONE DEL ROSARIO: FULL DISCLOSURE: I’M A PROUD PELOTON OWNER, BUT I’M ALSO PRETTY HAPPY I DON’T OWN THE  STOCK.

IS THERE A DOWNHILL SETTING ON THIS THING? BECAUSE THAT’S WHERE THE COMPANY’S BEEN GOING ALL YEAR LONG. AND WE’RE ONLY THREE WEEKS IN.

I MEAN – THE MISTER BIG DEBACLE WAS ONLY A MONTH AGO. LET’S DO A SEASON RECAP ON WHAT’S HAPPENED TO THIS TRAGICALLY UNDERPERFORMING COMPANY SINCE.

YOU MAY NOT BE ABLE TO CRASH A STATIONARY BIKE, BUT PELOTON’S STOCK CRASHED SO HARD ON THURSDAY THEY HAD TO HALT TRADING. BY THE END OF THE DAY THE STOCK WAS DOWN NEARLY 25%.

THE CRASH COINCIDES WITH THIS SCOOP FROM CNBC THAT THINGS ARE SO BAD AT THE COMPANY THEY’RE HALTING PRODUCTION OF BIKES AND TREADS. THE NETWORK CITES INTERNAL DOCS THEY OBTAINED.

BUT WAIT! PELOTON’S C-E-O SAYS THE RUMORS ARE FALSE! TOO LATE TO SAVE THAT STOCK PRICE.

IN A LETTER SENT TO THE PELOTON TEAM JOHN FOLEY WROTE: I WANT ALL OF YOU TO KNOW THAT WE HAVE IDENTIFIED A LEAKER, AND WE ARE MOVING FORWARD WITH THE APPROPRIATE LEGAL ACTION.

OTHER BUMPS IN THE ROAD THIS WEEK INCLUDE LOSING ITS SPOT ON THE NASDAQ 100, REPORTS OF STAFF LAYOFFS, NEWS THEY’RE HIKING THE PRICE ON BIKES AND TREADS, AND REPORTS EXECS AND INSIDERS SOLD NEARLY HALF A BILLION IN STOCK BEFORE ITS DESCENT.

QUITE THE BANNER WEEK, YES ONE WEEK.

THIS COMPANY’S BEEN A ROLLER COASTER. THE PANDEMIC DARLING HAS SEEN ALL OF ITS 2020 GAINS ERASED.

BUT EVER THE OPTIMIST – ITS CEO POINTS OUT SUBSCRIBERS ARE STILL CLIMBING! AND THEY’VE BROUGHT ON CONSULTING FIRM MCKINSEY TO TRY TO TURN THE REST AROUND.

I’LL END WITH A LITTLE SATIRE FROM TWITTER TITAN AND FINANCIAL ADVISOR DOUGLAS BONEPARTH, WHEN HE TWEETED: IRONICALLY, IT WAS PELOTON INVESTORS THAT WERE TAKEN FOR A RIDE.

I’M SIMONE DEL ROSARIO AND FROM MY HOME PELOTON STUDIO IN NEW YORK, IT’S JUST BUSINESS.