Peloton stock tumbles after company recalls treadmill
Yahoo Finance’s Emily McCormick breaks down Peloton’s treadmill recall debacle.
Video Transcript
KRISTIN MYERS: But I want to turn right now to what you actually started the show on, which is Peloton. They are absolutely taking a beating right now, down over 14%. We have Yahoo Finance's Emily McCormick here now with some of more details. Hi, Emily.
EMILY MCCORMICK: Hi, Kristin. And that's right. We are seeing losses for Peloton accelerating in afternoon trading after the company, as well as the US Consumer Product Safety Commission, issued two separate voluntary recalls of the Peloton Tread Plus, as well as the Tread treadmills from the company. The announcement comes following one child death and 70 safety incidents linked to the products. And this recall is expected to impact approximately 125,000 units here for Peloton.
So, definitely something that Wall Street is watching closely, has been concerned about, considering the fact that this is a company that was already expected to see some slowing momentum in 2021 after that really strong 2020 with people staying at home, working out at home, and showing strong demand for this equipment. We should note that with today's decline, we do have Peloton shares now down about 45% for the year to date. And that follows a rally of 430% in 2020. Kristin.