Why Peloton Stock Got Destroyed Today

Why Peloton Stock Got Destroyed Today
·2 min read

The news at Peloton Interactive (NASDAQ: PTON), a one-time darling of the pandemic trade, went from bad to worse on Thursday, as media reports described first a planned layoff of 41% of the company's sales and marketing staff -- and then a shutdown of production. As of 1:15 p.m., Peloton stock is already down 20%. Yesterday, reports from Business Insider of a Peloton plan to lay off 41% of its sales and marketing staff had no immediate impact on Peloton's stock price -- to the contrary, the shares gained more than 5%, presumably on hopes that layoffs would cut costs and boost profits at the exercise bike maker.

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