Peloton stock plunges 13% on treadmill recall

6:13 PM 5 May 2021

Peloton (PTON.US) shares fell more than 13% after the company decided to voluntarily recall two treadmill machines for safety reasons. Reports of several injuries and one death have been attributed to the products. Consumers are advised to immediately stop using the aforementioned products and contact exercise equipment company for a full refund or other qualified remedy. Company is working on a repair that will be offered to treadmill owners in the coming weeks.

"I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+.  We should have engaged more productively with them from the outset. For that, I apologize," Peloton Chief Executive Officer John Foley said in a statement. "Today’s announcement reflects our recognition that, by working closely with the CPSC, we can increase safety awareness for our Members."

Peloton (PTON.US) stock fell sharply during today’s session and reached a level not seen since September 2020. If the current sentiment prevails downward move may be extended to the $72.77 or even $62.48 level. Also recently medium-term 50-day SMA (green line) crossed under the long-term 200-day SMA (red line). This has formed a ‘death cross’ formation which additionally supports bearish scenario. However if buyers manage to halt declines at $81.78 support then upward impulse towards local resistance at $95.76 could be launched. Source: xStation5

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits