Peloton shares sink on second day of trading
Shares in fitness start-up Peloton sank a further four per cent today after making a disappointing stock market debut yesterday.
Peloton shares were initially priced at $29 when the company listed in New York yesterday morning, but closed more than 11 per cent down at $25.75.
Read more: Peloton prices float at $29 per share
The at-home exercise firm filed to go public in August after revealing it made $915m in revenue for the 12 months to the end of June, a 110 per cent rise on the previous year.
Founded in 2012, Peloton sells indoor exercise bicycles and offers packages requiring memberships to access live and on-demand classes from home.
Peloton has 1.4m and strong margins from the sale of its $2,000 bikes and $4,000 treadmill.
However, in the last financial year the company reported that losses widened from $48m to $245.7m.
The company is also embroiled in a $300m legal battle with 10 record labels and artists groups over Peloton’s use of their music.
Read more: Wework delays IPO plans amid investor caution
This year has proved tricky for unprofitable start up firms looking to go public. Shares in ride-hailing firms Uber and Lyft have plummeted following highly anticipated listings earlier this year.
Meanwhile last week Wework shelved plans for its initial public offering after failing to drum up investor enthusiasm.