Peloton shares hit all-time low as pressure mounts under new CEO Barry McCarthy

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In this photo illustration the Peloton Interactive logo seen displayed on a smartphone screen.
Rafael Henrique | LightRocket | Getty Images

Peloton Interactive shares tumbled to an all-time low Friday as investors lose hope that the connected fitness equipment maker can turn itself around and post a profit, even under a new chief executive officer.

The stock dropped more than 12% after the market opened, amid a broader selloff, to touch an all-time low of $14.70. That’s also well below Peloton’s IPO price of $29.

Peloton is set to report its quarterly results, now with Chief Executive Barry McCarthy at the helm, on Tuesday morning.

Its market capitalization has tumbled from roughly $50 billion early last year to under $5 billion.

On Thursday evening, The Wall Street Journal reported that Peloton is targeting potential investors, including industry players and private equity firms, to take a stake in its business of around 15% to 20%. The fresh capital could help Peloton as it attempts a turnaround, but there is no guarantee that such a transaction will be successful, the Journal said.

A spokesperson for Peloton declined to comment.

“Though it might be nice to get a vote a confidence … we don’t see this being too encouraging for those who own the stock,” said Gordon Haskett analyst Don Bilson, regarding the Journal report. “Moves like this are rarely made from positions of strength. Desperation is more like it.”

Activist firm Blackwells Capital has been ramping up pressure on Peloton to sell itself, recently arguing that the changes put into place so far under McCarthy aren’t enough. Blackwells has argued that a better owner might be Amazon or Netflix.

This story is developing. Please check back for updates.

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