Shares of connected-exercise-machine maker Peloton (PTON) - Get Peloton Interactive Inc. Report spiked Wednesday following a report that the company is gearing up to introduce two cheaper pieces of workout equipment in 2020.
The company will debut a treadmill that will cost less than the $4,000 version that is currently on sale, according to Bloomberg sources, as well as a rowing machine.
Peloton's stock had suffered a steep decline since its initial public offering in late September, bottoming out below $20.50 per share on Oct. 23. Since then, the stock has gained, with a few hiccups.
Peloton shares finished Wednesday trading up 5.2% at $25.98.
The machines could be the first new products the company has introduced since its $4,000 treadmill debuted about two years ago.
Peloton currently has a valuation of about $7 billion, but investors have been wary about the company's path to profitability due to its expansion plans, which have proven to be expensive.
The shares fell after the fitness equipment and software provider posted a wider-than-expected fiscal first-quarter loss, even as sales beat analysts' forecasts on growing sales of its connected fitness equipment and related subscriptions.
Despite the disappointing earnings report, Jim Cramer believes Peloton is "overly hated."