Peloton's (PTON) answer to rivals Mirror and Tonal in the strength category isn't a large new piece of dust-collecting hardware, but rather a high-tech $495 webcam.
On Tuesday, the company revealed the long rumored Peloton Guide. It will be released in the U.S. and Canada in early 2022, followed by rollouts in the UK, Australia and Germany.
In its simplest definition, the Guide attaches to the top of your TV or in front of it. The AI functions in the camera will track your movement in real-time, giving feedback on the screen if the exercise is being done correctly. It can be controlled with your voice.
“Peloton Guide demystifies strength training to create a more engaging experience that will help members stay motivated. We combined our world-class instructors and class content with the best machine learning technology to create a whole new way to train. This is just the beginning for Peloton strength. Guide will keep getting smarter so it can grow stronger alongside our members," said Peloton co-founder and chief product officer Tom Cortese in a statement.
For Peloton's sake, it better sell a lot of Guides this holiday season.
Peloton's stock crashed more than 30% on Nov. 5 after the company said that connected fitness subscribers of 2.49 million was roughly in-line with analyst estimates. The number of workouts on the platform trended lower for the second consecutive quarter. Sales fell well short of analyst estimates, and the company posted a wider loss than expected.
The stock has stayed under pressure since the report.
Peloton also slashed its full-fiscal year outlook.
The company sees full-year sales of $4.4 billion to $4.8 million, down sharply from $5.4 billion previously. Peloton expected a full-year adjusted operating loss of $425 million to $475 million. The company had expected an operating loss of $325 million.
To be sure, the bulls on Peloton were few and far between in the wake of its disappointing earnings day. Analysts across the board cut their forward financial estimates, and voiced concern the new outlook wasn't "kitchen sink."
"The results suggest Peloton's post-pandemic surge has dissipated, pressuring its ability to forecast, ironic as most consumer companies are now cheering visibility... a fact echoed through price cuts, as everyone flags inflation/scarcity. We worry lowered numbers remain too optimistic and that the biggest issues may actually lie ahead — in racing to meet pandemic-driven demand, the company embarked on a massive investment spree (Tonic, Precor, POP) dwindling cash and ballooning inventory just as demand tapered," said long-time Peloton bear Simeon Siegel at BMO Capital Markets.
Siegel reiterated an Underperform rating on Peloton and issued a $45 price target.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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