Peloton slashes the worth of its Bike by a whole bunch of {dollars} to $1,495

Cari Gundee rides her Peloton exercise bike at her home on April 06, 2020 in San Anselmo, California.

Ezra Shaw | Getty Images

Peloton said it’s lowering the price of its less expensive Bike machine by about 20% to $1,495, starting Thursday.

This marks the second time Peloton has cut the price of its original Bike. When the company debuted its Bike+ machine last September at $2,495, it cut the original Peloton Bike’s price from $2,245 to $1,895.

Prices also will be cut in the U.K., Canada, Germany and Australia, the company said in a blog posted to its website.

Following a recall and redesign, Peloton will begin selling the less-expensive version of its treadmill machine, the Tread, next week.

Peloton also said it is offering new monthly financing options for its Bike+ and Tread, to try to make the products more affordable.

Also Thursday, Peloton reported its fiscal fourth-quarter results. It posted a wider-than-expected loss, as sales growth slowed dramatically.

The at-home fitness equipment maker experienced incredible momentum during the Covid pandemic, sending its sales and stock price soaring. But some analysts and investors worry that momentum will fade as more consumers feel comfortable returning to gyms. Year to date, Peloton shares are down nearly 24%, bringing the company’s market cap to $34.2 billion.

Peloton is searching for ways to keep revenue growing and to find new customers. Its plans include expanding to new markets and rolling out additional at-home fitness products, one of which is rumored to be a rower. In June, Peloton launched a corporate wellness program.

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