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Peloton Extends Drop as Amazon Debuts Rival Fitness Service

Peloton Extends Drop as Amazon Launches Rival Fitness Service

Peloton Interactive Inc. extended declines on Tuesday following news that Amazon.com Inc. is launching a service called Halo Fitness to rival offerings from Peloton and Apple Inc.

The stock dropped as much as 5.5% on Tuesday, but it pared some of the decline to close down 4.6% and at the lowest level in more than four months. Peloton was already trading lower ahead of the news, participating in a broad selloff of technology stocks spurred by rising bond yields. Apple fell 2.4% on Tuesday while Amazon slid 2.6%.

Peloton Extends Drop as Amazon Debuts Rival Fitness Service

Amazon’s Halo membership includes “hundreds of workouts” through an app and can track body composition and sleep patterns, according to the company’s website. Amazon is selling a Halo Band that works with the fitness service.

Peloton is best known for its technology-infused exercise bikes, but it also offers subscriptions to workout programs. It sells a connected fitness subscription for access to classes through its products and a broader digital offering with a variety of workouts like strength training and yoga, according to a filing. In the fiscal year ended June 30, subscription revenue accounted for about 22% of total sales, data compiled by Bloomberg show.

Earlier this month, Peloton fell after Apple touted updates to its Fitness+ service during an event.

©2021 Bloomberg L.P.