Shares of Peloton Interactive (NASDAQ:PTON), a maker of connected home-exercise equipment, were down 4% as of 3:15 p.m. EDT on Friday, after dipping more than 5% earlier in the day.
A product recall announced yesterday — and, possibly, coronavirus-related news — are weighing on the stock today.
On Thursday, Peloton announced a recall of a type of clip-in bike pedal, involving about 27,000 of its home exercise bikes. The company said the PR70P pedals “can break unexpectedly during use, causing laceration injuries.”
It said that it has received 120 reports of breakages from consumers, including 16 reports of leg injuries.
Besides the company-specific news, more general news from drugmaker Pfizer (NYSE:PFE) today may also be affecting what investors consider a pandemic stay-at-home name. Pfizer detailed a timeline for presenting its coronavirus vaccine to the Food and Drug Administration for emergency use authorization, saying it could be ready for that application as soon as the third week in November.
Much of Peloton’s recent success is thought to be tied to pandemic restrictions keeping people home, and away from indoor public gathering places like gyms. The stock price is up 360% since the start of 2020, and any positive, specific vaccine news is likely to entice investors to take some profits.
The recall itself adds to the negative tone for Peloton today. The company said the first-generation pedal that is being recalled was installed on bikes sold between July 2013 and May 2016. The effected bikes were sold both online and at its retail showrooms nationwide.