Peloton Shares Jump As Fitness Group Cuts Stationary Bike Price, Unveils New Gear

Peloton will drop by the price of its signature stationary bike by 25% as its unveils a line-up of new connected fitness gear that includes the Peloton Bike+ and Peloton Tread+.
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Peloton Interactive  (PTON) - Get Report shares jumped higher Tuesday after it cut the price of its signature exercise bike while introducing two new models to its connected fitness lineup. 

Peloton said it would lower the price of the stationary bike by 25% to $1,985, or $49 per month if the purchased is financed through the company. With the $39 streaming fee, the all-in price falls to $88 per month and comes into effect on Wednesday, the company said.

The group also said it will introduce Peloton Bike+, a new connected fitness product that compliments the group's indoor cycling class, as well as Peloton Tread+, a newer version of the company's treadmill.

"When we launched Peloton, we knew we were onto something special. Now, eight years later, we have a passionate global community of 2.6 million Members, and we feel like we're just getting started, in terms of how we can impact the health and well-being of people worldwide through our platform, content and products," said CEO John Foley. "Our goal is to be the go-to at-home fitness solution for as many people as possible, and with these new product launches, we'll be able to offer access to Peloton's best-in-class fitness content at various price points, depending on what consumers are looking for, especially in a world where people are increasingly working out at home." 

Peloton shares were marked 2% higher in early trading Tuesday to indicate an opening bell price of $82.16 each, a move that extends the stock's year-to-date gain to around 186% and values the New York based group at around $23.5 billion.