Peloton loses $2.5 bln in market value after report on production pause
Jan 20 (Reuters) - Peloton Interactive Inc (PTON.O) is temporarily halting production of its connected fitness bikes and treadmills after a significant drop in demand, CNBC reported on Thursday, citing internal documents from the company.
Shares in the exercise bike maker, once a pandemic darling, closed down 24% at about $24, wiping off nearly $2.5 billion in market value.
Late on Thursday, Peloton said it was taking "significant corrective actions" to improve its profitability and estimated second-quarter revenue to be about $1.14 billion, compared with its previous forecast of $1.1 billion to $1.2 billion. The company, however, did not comment on the production pause report.
According to the CNBC report, Peloton, in a confidential presentation dated Jan. 10, said it had seen a "significant reduction" in demand and that it planned to pause bike production in February and March. It also won't manufacture the Tread treadmill machine for six weeks, beginning next month.
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