Peloton shares drop, then rebound on Apple’s Fitness+ announcement

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.

a tall building in a city: The Peloton logo is displayed, center, on the Nasdaq MarketSite, Thursday, Sept. 26, 2019 in New York's Times Square. (AP Photo/Mark Lennihan)

© Provided by Yahoo! Finance
The Peloton logo is displayed, center, on the Nasdaq MarketSite, Thursday, Sept. 26, 2019 in New York’s Times Square. (AP Photo/Mark Lennihan)

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.


Load Error

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

Continue Reading

Source Article

Next Post

Dr. Adel Quttainah: Successfully Combines Cosmetic Medicine and Surgery - Press Release

Wed Sep 16 , 2020
NEW YORK, NY / ACCESSWIRE / September 4, 2020 / Dr. Adel Quttainah is no stranger to making history. After all, before opening Quttainah Medical Center in 2016, he launched Cosmetic Surgery Clinic, making him the first to provide all cosmetic medicine and surgery under one roof in Kuwait. It’s […]

You May Like