Peloton Interactive (NASDAQ: PTON) shares fell over 12% Friday, reaching an all-time low of USD14.70, as investors fear that the company may not be able to rebound and post a profit. The company, led by new Chief Executive Barry McCarthy, is scheduled to report its quarterly results on Tuesday morning.
On Thursday, a report from The Wall Street Journal said that Peloton is currently seeking out investors to acquire a stake anywhere between 15% and 20% as a means of stabilizing the company. The funds may be able to help Peloton attempt a turnaround, though such a move is not guaranteed to take place, the Journal said.
Peloton has refused to comment on the matter at this time.
“Though it might be nice to get a vote of 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.”
As a means of attracting new customers and increasing profits, Peloton reduced the prices of its Bike, Bike+ and Tread machines, but plans to increase its monthly all-access subscription fee next month.
“From its initial success to its ongoing strategic tests, the company has yet to find a sense of normalcy that can smooth out the recurring volatility,” said BMO Capital Markets analyst Simeon Siegel.
The company’s shares have tumbled 52% throughout the year and have a current market cap of USD5.2 Billion.