Peloton cuts pricing, upgrades equipment
Peloton is trying to defend its turf as gyms begin to more fully reopen around the country.
The home fitness company, which saw demand surge when stay-at-home orders were put in place back in March, announced Tuesday that is offering a lower priced stationary bike and treadmill and is introducing new versions of both.
The new bike has a price tag of just under $2500. The price on the current bike drops to just under $1900. Customers who paid full price for the older model in the past 30 days will get a $350 refund.
The new treadmill, which won’t be available until early next year, will be a cheaper version coming in for less than $2500. Peloton’s current model sells for over $4,000.
Peloton has a lot to prove. Last quarter it boosted revenue forecasts on expectations a shift away from traditional gyms would last. But as of last quarter, it was still losing money.
The stock has been a high-flyer….nearly tripling in value since the start of the year. Investors added to that on Tuesday with a 6 percent jump.
