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Peloton shares slip, extending two-day losses

A monitor displays Peloton Interactive Inc. signage during the company’s initial public offering (IPO) across from the Nasdaq MarketSite in New York, U.S., on Thursday, Sept. 26, 2019.

Michael Nagle | Bloomberg | Getty Images

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.

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