Peloton Stock Reverses Gains After CEO Departure, Job Cuts

The company's fiscal third-quarter results missed estimates

Laura McCandless

Deputy Editor

May 2, 2024 at 10:55 AM

PTON

Peloton Interactive Inc (NASDAQ:PTON) reported disappointing fiscal third-quarter results before the open today. The company also announced it will cut 15% of its workforce -- roughly 400 jobs -- and that CEO Barry McCarthy is stepping down. PTON was up as much as 8.6% earlier, but has since pivoted sharply lower, down 7.1% at $2.99 at last glance.

Peloton stock isn't too far removed from its April 25 record low of $2.91, and an executive today stated that the home fitness equipment name is still dealing with the whiplash that happened after Covid-19. On the charts, today's earlier rally was rejected by pressure at the 40-day moving average. Year to date, the equity is down 50.6%.

Call trades are popular in the options pits today, with 41,000 exchanged so far in comparison to 14,000 puts. Overall, PTON has already seen 2.4 times its average daily options volume, with the most activity by far at the October 5 call, where new positions are being bought to open.

It's also worth noting that short interest represents 15.3% of the stock's available float. It would take shorts nearly four days to cover, at PTON's average pace of trading.

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