Peloton Stock Stuffers After Adjustable Seat Recall

Peloton stock is still suffering after the company issued a recall involving more than two million of its bikes.

“Shares of the fitness company plummeted 20% in early trading Wednesday after another dismal earnings report that revealed the recall’s price tag “substantially exceeded” Peloton’s expectations, costing the company $40 million and about 20,000 members who paused their monthly subscriptions because they were waiting for a replacement seat post,” CNN reported. 

After Peloton issued the seat recall, the company received 750,000 requests for new seat posts. This number was more than the company expected and so far, only half of the requests have been fulfilled. According to Peloton, the remaining requests are expected to be completed by the end of September. 

Peloton CEO, Barry McCarthy, explained to investors in a letter that Peloton is a “seasonal business” and while sales slowed down from May until the first three weeks of June, he expects to see a reacceleration in hardware sales.