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Here’s some more bad news for formerly high-flying quarantine stock Peloton.
Just over a week after the company reported its worst quarter yet, Forbes reports (citing data from Apptopia) that Peloton has seen use of its app drop 42% over just the last four months, as a treadmill recall, government investigation and the ability to return to gyms and workout classes without masks (though many have since reversed this) have all weighed on the app’s popularity.
Just as shocking is that the drop is mostly steady from month to month. Though there is one “ray of hope” according to Forbes: August saw a smaller dip than the previous months.
In a sign that Peloton’s brand may be losing some of its “premium” sheen, smaller competitor iFit saw its use decline by only 16.5% over the same time period.
Peloton also saw use balloon sharply last year, so some amount of pullback is to be expected.
But Forbes’ John Koetsier wrote that this looks like more than a pullback: instead, it could be a major hurdle that will take time and dedication to reverse. “…Peloton has a lot of work to do to reassure customers that its products are safe, to settle existing lawsuits, and to rebuild its product portfolio in safe and attractive way,” he added.
Shares of Peloton traded lower on Friday…
….reaching their lowest level since early May.
Fri, 09/03/2021 – 15:25