Peloton Interactive (NASDAQ:PTON)
As of 11:30 AM ET, Peloton stock has down 10.3%. Despite Amazon’s (AMZN) announcement yesterday that the Peloton Bike was one of the Top 100 selling during the two-day Prime Early Access Sale, this news is a surprise.
However, Peloton Interactive (NASDAQ:PTON) is also dealing with the consequences of the news that the company’s founder and ex-executive chairman, John Foley, faced margin calls on loans taken out against the Peloton stock. The former instructor has filed a $1.8 million discrimination lawsuit against Peloton.
What’s the Reason?
To broaden its customer base, Peloton has launched a new Amazon shop. Amazon wanted to boost holiday season sales before Black Friday and Cyber Monday. So, Peloton Interactive (NASDAQ:PTON) strategically expanded its online presence at the right moment by holding a replay of its annual Prime Day sales spree.
Amazon doesn’t provide specific numbers, but it does give a general idea of what sells well. A Peloton Bike, even the basic model, was among the Top 100 Deals of the Year. There was a promotion for 15% off plus delivery on the linked exercise bike, which normally sells for $1,445. Some of the accent pieces were reduced by 25%.
However, the number of Bikes and accessories sold at the event was not disclosed.
What’s Next?
However, Peloton is dealing with several issues, such as declining sales and class participation. Moreover, there is a new case that might cast a negative light on the linked fitness firm. A former professor claims that a high-ranking executive made it a point to harass him only because of his Irish heritage, leading to his unjustified termination.
After the news broke that Foley had used a considerable number of Peloton stock as collateral for debts he had taken out, only to have their value drop and cause a margin call, the former employee severed all relations with the firm in September.
Meta Description
In light of falling sales and fewer people showing up to classes, Peloton stock has been falling.
Featured Image – Megapixl © Wolterk
Author Shariq Khan 
