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(Bloomberg) – Peloton Interactive Inc. extended its decline on Tuesday following news that Amazon.com Inc. is launching a service called Halo Fitness to compete with offerings from Peloton and Apple Inc.
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The stock fell as low as 5.5% on Tuesday, but eased some of the decline to close at 4.6% and the lowest level in more than four months. Peloton was already trading lower before the news broke, participating in a large sell-off of tech stocks spurred by rising bond yields. Apple fell 2.4% on Tuesday while Amazon slipped 2.6%.
Amazon’s Halo membership includes “hundreds of exercises” through an app and can track body composition and sleep patterns, according to the company’s website. Amazon sells a Halo Band that works with the fitness service.
Peloton is best known for its tech-packed exercise bikes, but it also offers training program subscriptions. It sells a connected fitness subscription to access classes through its products and a larger digital offering with a variety of workouts like strength training and yoga, according to a file. In the fiscal year ended June 30, subscription revenue represented about 22% of total sales, according to data compiled by the Bloomberg Show.
Earlier this month, Peloton fell after Apple touted updates to its Fitness + service at an event.
(Updates stock movements and chart.)
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