Peloton drops 7% after the cycle-maker said it’s struggling to keep up with surging demand for its flagship fitness products
- Peloton’s shares dropped 7% at the market open on Friday after the release of its second-quarter earnings.
- The cycle-maker said it would invest $100 million to accelerate the speed of product deliveries worldwide.
- Wedbush maintained its outperform rating on Peloton as analysts expect the at-home fitness trend to last.
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Peloton fell 7% on Friday after the company said it continued to struggle with delivering its bike and treadmill products on time.
The company reported its first ever billion-dollar quarter on Thursday, helped by a boom in demand for fitness products during the holiday season. But over the past year, Peloton’s customers have complained of months-long waits, delivery delays, and last-minute cancellations.
Manufacturing lags were not the only challenge for deliveries. Shortages of containers, extended port delays, and a backlog to get containers unloaded