Peloton (PTON) shares initially dropped after tech giant Apple (AAPL) announced its Fitness + app for the Apple Watch and iPhone. The service will provide exercise videos that users can follow via their devices.
Prior to the announcement, Peloton’s stock had been up more than 7% on the heels of a price target increase at Argus Research. The stock dipped by about 5% after the Fitness+ unveiling, before partially rebounding.
Apple is tapping into a market in which the bike and treadmill maker has been a major winner. Peloton’s second quarter smashed estimates, posting its first ever profit. Its results were boosted by the pandemic as people have been working out at home.
Recently Peloton announced it was cutting the price for its existing bike by 15% and unveiled a new higher end bike with a rotating screen and Apple Watch integration.
Despite the Apple watch integration, it appears that Apple’s Fitness+ service will compete with Peloton’s digital service. At least on price point, Apple’s costs less.
Apple’s Fitness+ will cost $9.99 per month or $79.99 per year. By comparison, Peloton’s digital subscription service costs $12.99 a month, and its subscription for its bike or treadmill memberships is $39.99.
Apple Fitness+ exercises will include yoga, cycling, treadmill, strength training and core workouts, among others. The new service was announced along with its latest Apple Watches during its virtual unveiling event on Tuesday.
Year-to-date Peloton is up about 205%.
Apple’s stock is up about 57% year-to-date.
Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre
Nikola calls short-seller report a ‘hit job,’ shares still fall
Why Tesla shares are tanking today
Tesla analyst is bullish on what the company is doing with its high-priced stock, raises price target to $550
Apple analyst says record-breaking share price rally is about ‘MOMO’ not ‘FOMO’
Tesla shares surge 12% on day of stock split