Shares of Peloton extended their two-day losses, trading down as much as 8.9% on Wednesday, following a critical short-seller note from Citron Research that gave the in-home exercise bike company a meager $5 price target.
Since its IPO in late September, Peloton shares have traded between roughly $20 and $30 per share.
The short-seller cautioned that cheaper competition threatens to hammer the stock, especially after the company's lock-up period ends in March 2020. The stock fell about 6% on Tuesday after the note was released.
The company's IPO was highly anticipated, though the stock debuted down 11% from its initial pricing of $29 per share. At the time of its debut, the company ranked as the second-worst public offering of a unicorn, or company privately valued at over $1 billion, this year.
Since its IPO, Peloton shares are up approximately 30%. The company currently has a market capitalization of roughly $9 billion.
Shares of Peloton closed at $32.03 Wednesday, down roughly 2% for the day.
Disclosure: CNBC parent Comcast-NBCUniversal is an investor in Peloton.