Peloton Interactive stationary bikes at the company’s showroom in Dedham, Massachusetts.
Adam Glanzman/Bloomberg
Peloton Interactive shares are taking a breather.
After climbing 318% in a year, shares of the popular home fitness equipment maker are under pressure. They are down 10% on Wednesday after a prominent TV host said he was “moving on.”
Jim Cramer, host of the CNBC show Mad Money, said Tuesday evening that he had cooled on Peloton after it bought a treadmill company and did other acquisitions to diversify from its core stationary bicycle offering.
“It’s had a big run, and I’m moving on,” he told a caller into his show.
Peloton (ticker: PTON) shares have dropped 32% since the start of the year, compared to the S&P 500’s 4.5% gain.
Of course, Peloton is also taking a hit as people begin to think about life beyond their living rooms. More exercise gyms are opening around the country as vaccinations accelerate and local governments ease up on business restrictions.
Other stay-at-home darlings are also losing steam. DocuSign (DOCU) fell fell 4% on Wednesday. Zoom Video Communications (ZM) fell nearly 7%. Two days ago, Citigroup said it would ban Zoom calls on Fridays to give employees a break from videoconferences.
Peloton competitors are also stepping up. TechCrunch reported that the Danish company Motosumo raised $6 million from investors to double the number of its spin instructors and boost marketing efforts. Motosumo’s product isn’t dependent on special equipment to work. Users can watch exercise sessions on any smartphone or tablet using any stationary bike they want.
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