Peloton stock falls following recall of over 2 million bikes tied to injuries, faulty seats
The Yahoo Finance Live team discusses the fall of Peloton stock amidst a bike recall due to fall and injury hazards.
Video transcript
- All right, taking a look at shares of Peloton. Trading down on a recall announcement. Off about 7% so far. The US Consumer Product Safety Commission announcing a recall of 2 million plus exercise bikes. The release says the bike's seat post assembly can break during use, posing fall and injury hazards.
The Commission has received 35 reports of the seat breaking and 13 reports of injuries, including a fractured wrist, lacerations, and bruises. And this is not Peloton's first recall. In May of 2021, there were recalls of Peloton's Tread+ and Tread treadmills. One child died after being pulled under the machine while it was in use.
And additionally, the company received 72 reports of adults, kids, pets, and objects being pulled under the rear of the machine. That's certainly a stain on the company's name. Months after that, Peloton experienced a PR nightmare after HBO's "Sex and the City" reboot went with a storyline that involved a character Mr. Big having a heart attack and dying after riding a Peloton Bike. That sent shares tumbling back in December of 2021.
Now, the stock has seen significant turbulence over the years. As we take a look here, shares down more than 43% over the past year. Now, you can see the stock spiking during the pandemic when everyone, including myself, wanted at-home exercise equipment, peaking in 2021 before starting its descent as you see there. Over five years, down 72.8%.