By Yasin Ebrahim
Investing.com – Peloton plunged below its initial public offering price Thursday as the company is reportedly planning to stop production of connected fitness products amid waning demand, CNBC reported, citing internal documents.
Peloton Interactive (NASDAQ: PTON ) fell 20% to $24.02, well below its $29 a share IPO.
Peloton plans to halt production of its bike for two months, from February to March, CNBC reported, citing the documents. The stoppage comes just a month after the company suspended production of its Bike+ in December until June.
Manufacturing of the Tread treadmill machine will also be halted for six weeks, beginning in February, while production of the more expensive Tread+ machines won’t be resumed in fiscal 2022, according to the documents, the report said.
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