What happened
Shares of Peloton Interactive (PTON -1.96%) are soaring 18.1% at 10:38 a.m. ET on Wednesday after the maker of connected fitness equipment announced it would be selling its bikes, apparel, and accessories through a Peloton storefront on Amazon (AMZN -2.53%).
Previously, Peloton gear was only available through its own website or in the handful of retail stores it operated, but the market seems to believe reaching a broader consumer audience through Amazon will help lift sales.
So what
The storefront will only offer Peloton's basic Bike, which sells for $1,445, while the upscale Bike+, which goes for $2,495, will be sold on its own website. Other gear available will include the Guide, an interactive strength training aid; workout mats; shoes; and dumbbells.
Peloton Chief Commercial Officer Kevin Cornils said in a statement: "We want to meet consumers where they are, and they are shopping on Amazon. Providing additional opportunities to expose people to Peloton is a clear next step, as we continue to generate excitement for our unparalleled connected fitness experience."
Now what
It's doubtful the Amazon storefront is going to turn Peloton Interactive around. Peloton is not a small, unknown business; consumers could just as easily head over to the equipment maker's website and order up a pricey stationary bike.
The thought that merely the appearance on the e-commerce giant's platform will magically transform the business seems misguided at best. Certainly having a storefront can't hurt, as it's always a good idea to reach potential customers wherever they happen to be shopping, but it seems a stretch to think it will be a transformative event for Peloton as the stock's reaction to the news suggests.
