Peloton shares drop, then rebound on Apple’s Fitness+ announcement
PTON) shares initially dropped after tech giant Apple (AAPL) announced its Fitness + app for the Apple Watch and iPhone. The service will provide exercise videos that users can follow via their devices.
a price target increase at Argus Research. The stock dipped by about 5% after the Fitness+ unveiling, before partially rebounding.
quarter smashed estimates, posting its first ever profit. Its results were boosted by the pandemic as people have been working out at home.
announced it was cutting the price for its existing bike by 15% and unveiled a new higher end bike with a rotating screen and Apple Watch integration.
Despite the Apple watch integration, it appears that Apple’s Fitness+ service will compete with Peloton’s digital service. At least on price point, Apple’s costs less.
Apple’s Fitness+ will cost $9.99 per month or $79.99 per year. By comparison, Peloton’s digital subscription service costs $12.99 a month, and its subscription for its bike or treadmill memberships is $39.99.
its latest Apple Watches during its virtual unveiling event on Tuesday.
Year-to-date Peloton is up about 205%.
Apple’s stock is up about 57% year-to-date.
@ines_ferre” data-reactid=”40″>Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre
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