Peloton Interactive, Inc. (NASDAQ:PTON) shares were in the gutter Thursday, dropping 25% following a disappointing second-quarter earnings report and the announcement of a key leadership departure.
- PTON stock is tanking. See the chart and price action here.
Here is the breakdown of why investors are selling off Peloton stock:
Double Miss
Peloton missed analyst estimates on both the top and bottom lines for the crucial holiday quarter:
- Revenue: Reported $656.5 million, a 3% year-over-year decline and well below the $677.2 million analysts expected, according to Benzinga Pro.
- Loss per Share: Reported a loss of 9 cents per share, wider than the 6 cent loss anticipated by Wall Street.
- Subscriber Decline: Paid connected-fitness subscriptions fell 7% to 2.66 million, the lowest level in over four years (since September 2021).
“So yes, revenue missed our expectations for the quarter … I think that’s a reflection on our old …