What happened
Shares of Peloton Interactive (PTON +0.78%) continue where they left off last week, dropping some 9.7% at 11:15 a.m. ET on Monday.
While there was no company-specific news to account for the sharp drop in price, sentiment surrounding the company has been consistently negative, and the markets overall have been trending lower, adding to the pressure. The Dow Jones Industrial Average is down over 100 points this morning, though that's a drop of less than half a percentage point.
NASDAQ: PTON
Key Data Points
So what
Peloton stock is close to revisiting the all-time lows it hit last month as the outlook for consumer demand of high-end home fitness equipment dims on rising recession fears. A recent industry survey found very few people are likely in the market for equipment over the next 12 months, with just 9% saying they were very likely to buy but 35% responding they were very unlikely to do so.
Peloton will also face significantly higher costs if it needs to tap the capital markets, with Stifel analyst Scott Devitt saying the current environment is "at a higher cost than arguably anytime in the past 20 years."
Now what
Peloton Interactive is also feeling dissent in the ranks of its employees as it reprices equity options for eligible workers while offering hourly workers a one-time cash bonus to keep them on board and boost morale.
With few or no catalysts in the immediate future for its business, the prospects for a further spiraling down of its stock seem great.
