In this article PTON
Shares of Peloton closed down 23.9% at $24.22 on Thursday, wiping roughly $2.5 billion off of its market value. The sharp drop brought the stock beneath the $29 mark where it first priced at in September 2019, and marked another notable milestone in the company's turbulent ride in recent months. The shares plummeted after CNBC reported that the connected fitness company is temporarily stopping production of its products, and they were halted for volatility multiple times. After the market closed, Peloton then issued a press release that said its fiscal second-quarter revenue would be within its previously forecast range. However, it said that the quarter ended Dec. 31 would add fewer connected fitness subscribers than it had been projecting. Peloton shares turned positive in extended trading, on this announcement. "As we discussed last quarter, we are taking significant corrective actions to improve our profitability outlook and optimize our costs across the company," said Chief Executive John Foley, in a statement. Peloton went public more than two years ago with an initial market capitalization of $8.1 billion. The stock briefly traded below the $29 threshold following its public debut. Around mid-March of 2020, near the onset of the pandemic, Peloton shares were hovering around $23, as the broader market was tumbling amid the uncertainty of the coronavirus.
A monitor displays Peloton Interactive Inc. signage during the company's initial public offering (IPO) across from the Nasdaq MarketSite in New York, U.S., on Thursday, Sept. 26, 2019. Michael Nagle | Bloomberg | Getty Images