Tech

Peloton shares jump nearly 9% on report a cheaper treadmill and new rowing machine will launch next year

Key Points
  • Shares of Peloton jump nearly 9% before the closing bell Wednesday following a Bloomberg report that the company plans to launch a new rowing machine and cheaper treadmill next year.
  • Peloton currently offers bikes and treadmills for $2,000 and $4,000, respectively.
  • Peloton's shares seesaw on its first earnings report since going public in late September.
John Foley, co-founder and chief executive officer of Peloton Interactive Inc., stands for a photograph during the company's initial public offering (IPO) in front of the Nasdaq MarketSite in New York, on Thursday, Sept. 26, 2019.
Michael Nagle | Bloomberg | Getty Images

Shares of Peloton jumped nearly 9% before the closing bell Wednesday following a Bloomberg report that the company plans to launch a new rowing machine and cheaper treadmill next year.

Peloton, which sells fitness equipment that streams subscription-based workout classes, currently offers bikes and treadmills for $2,000 and $4,000, respectively. Streaming workout classes costs $39 a month, while Peloton also sells a digital membership for $19.49 a month that gives access to classes on the company's mobile app.

A spokesperson for Peloton declined to comment on the report to CNBC.

Last week, Peloton's shares seesawed on its first earnings report since going public in late September. The company reported revenue of $228 million, compared with the $112.1 million in revenue for the same quarter a year earlier. Net losses, meanwhile, came in at $1.29 per share, which was better than the $2.18 loss per share in the year-ago quarter.

Peloton shares are down approximately 11% from its initial IPO price of $29 per share. Following its public offering, Peloton had the second-worst debut this year of a "unicorn" company, or a company with a valuation above $1 billion.

Read the full Bloomberg story here.

VIDEO6:2606:26
Peloton CEO John Foley on the company's growth and profitability