Peloton's 81% decline gets it kicked out of the Nasdaq 100 just one year after its inclusion
Pelotonis set to be kicked out of the Nasdaq 100Index just one year after its inclusion.
- The home fitness equipment company has seen its stock price decline by 81% from its record high.
- Peloton will be replaced by Old Dominion Freight Line prior to market open on January 24.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Peloton is set to be kicked out of the Nasdaq 100 index after its stock price fell 81% from its record high.
The connected-fitness company was originally added to the tech-heavy index in late December 2020, meaning the company will only have been in the index for about 13 months. Shortly after Peloton was added to the index, its market capitalization hit a record $48 billion. Today, Peloton is worth about $11 billion.
Peloton initially saw a surge in business amid the COVID-19 pandemic, as closed gyms led to consumers flocking to home-exercise products. The demand was so strong for Peloton's bikes that its scheduled delivery time was delayed by several weeks.
Peloton's strong demand ultimately caught up to supply chain disruptions, which extended its delivery times even further and limited the company's ability to meet the high influx of orders. From there, a product recall for its treadmill, concerns about demand in a post-pandemic world, and a hawkish pivot from the Federal Reserve have contributed to the stock's sizable decline.
Peloton is set to be replaced by Old Dominion Freight Line prior to the market open on January 24. The changes will impact the Nasdaq 100, the Nasdaq 100 Equal Weighted Index, and the Nasdaq 100 Ex-Technology Index.
The swap between Peloton and Old Dominion sums up the ongoing rotation in the
Shares of Peloton traded down about 4% in early Friday trades following the index change announcement.
- This Indian couple plans to get married in a Hogwarts-themed metaverse to beat the pandemic's restrictions
- Here are some of Netaji’s inspirational quotes as India remembers its valiant fighter
- Lifecycle of cryptocurrencies – From creation to trade and destruction
- Reliance Industries net profit more than triples in the last eight quarters to $2.8 billion
- Reliance Retail earns $1.3 billion more than its best-ever quarter