What happened

Shares of Peloton Interactive (PTON -2.48%) were falling 7% in midday trading Friday, as the broader market dropped 2% in the second consecutive day of decline.

So what

Peloton cycled 12% higher in August as Wall Street reconsidered whether it was underestimating the high-end connected fitness leader's growth potential. The coronavirus pandemic spurred a major growth trend in at-home fitness, and Peloton was one of the major beneficiaries. 

With the market swinging lower in September, investors may be taking some profits. The stock has nearly tripled in value in 2020 and has more than quadrupled from the lows it set back in March.

Woman riding a stationary bike

Image source: Peloton Interactive.

Now what

The connected fitness guru is said to be planning to release a sub-$3,000 treadmill to bring in more consumers who may be put off by its primary Tread, which retails for just under $4,300. We knew one had been in the works for a while, but the price point was a bit of a mystery.

Peloton faces a growing phalanx of competitors like Nautilus that have sought to stake out the more affordable end of the market. But it apparently is ready to lean into the luxury fitness space even further: Bloomberg reports that the company plans to introduce a premium stationary bike called Bike+, which will retail above its current spinner, now selling for $2,245. Notably, the current model's price will then drop to below $1,900.

Despite the drop in price, there looks to be plenty of tread left of this connected fitness leader.