Shares of Peloton Interactive Inc. slid to a new all-time low Thursday, with a recall announcement the latest in a string of negative developments for the maker of connected exercise equipment.
The stock
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closed off 8.9% in afternoon trading to finish the session at $6.86, below its prior closing low of $6.93 level hit Sept. 30, 2022.
Peloton’s stock has suffered a fall from grace since the company went public in September 2019 with an initial public offering price of $29 a share. The shares finished as high as $167.42 Jan. 13, 2021, buoyed by strong demand for its equipment as the stay-home economy roared on during the pandemic. But demand for Peloton bikes cooled in a big way as the economy reopened, and the company has been trying to find its footing in the new reality.
The latest piece of bad news for Peloton is a recall of 2.2 million of the company’s original exercise bikes in the U.S. The company announced the recall Thursday morning alongside the U.S. Consumer Product Safety Commission, though Peloton also said it would offer all affected owners a new seat that they could install themselves to fix the safety issue.
See more: Peloton is recalling 2 million exercise bikes due to injury risks and its stock is slipping
Though Peloton’s losses have been narrowing, its shares have dropped 50% over the past three months as the company continues to face broader challenges. Peloton disclosed a $75 million patent-infringement settlement with Dish Network Corp.
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alongside its last earnings report earlier in May and expects that this settlement “will significantly pressure” free-cash flow for the current quarter, while also eliminating an overhang on the shares.
