Peloton Stock Extends Side After Getting Dumped From Nasdaq 100 Index

Peloton Stock Extends Side After Getting Dumped From Nasdaq 100 Index

Pelton shares, which lost nearly three quarters of their value last year, will be removed from the Nasdaq 100 index on January 24.

Peloton  (PTON) – Get Peloton Interactive, Inc. Class A Report shares slumped lower Friday, extending their six-month decline past 72%, after Nasdaq officials planned to remove the fitness equipment maker from its benchmark tech indices.

The Nasdaq said shipping operator Old Dominion Freight Line  (ODFL) – Get Old Dominion Freight Line, Inc. Report will replace Peloton for the start of trading on January 24, a move that could trigger even more selling from investors that track indices such as the Nasdaq 100, the Nasdaq Equal Weight Index and the Nasdaq ex-Technology Index.

Peloton shares were marked 1.2% lower in early trading Friday to change hands at $31.76 each, after hitting the lowest since the peak of the market decline in May of 2020 in pre-market trading.

Peloton, as well as other so-called ‘stay-at-home’ stocks, has struggled to hold investor confidence as pandemic-triggered surges in orders and sales faded amid easing restrictions on indoor gatherings and a return to office work.

Investors were also caught off-guard when the fitness equipment-maker unveiled plans to sell $1 billion worth of shares in mid-November – less than two weeks after saying it had not plans to raise new capital.

The move follows a $9.2 billion wipeout in Peloton shares following weaker-than-expected third quarter earnings published on November 5.

Peloton posted a net loss of $376 million for its fiscal first quarter, which ended in September, amid the slowest sales growth in more than a year and said 2022 revenues would likely come in between $4.4 billion and $4.8 billion, a $1 billion reduction from its prior forecast.

Adding to its demand woes, Peloton said the $400 price cut to its signature bike, rising freight costs and supply chain disruptions — alongside costs linked to its treadmill recall — would squeeze profit margins for the remainder of its fiscal year.

Provided by: The Street Retirement

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