While the company has users in North America and Europe, much of its revenue is concentrated in the US, where gyms began re-opening last fall after statewide lockdowns kept many of them from doing business in-person. Gym owners in the US saw subscriptions go up in January, boosted in part by a pivot to online offerings. But despite its absurdly long waitlist, Peloton struggled to connect with consumers as lockdowns lifted, and slashed the price of its bike by $400 in August after its earnings report showed slower growth in the quarter ending this June.

The company also had to recall more than 125,000 of its treadmills in May after reports emerged that children were being injured by them. Treadmill sales, though, represent just a small portion of Peloton’s sales.

A return to the gym?

As Peloton stock dropped, shares of gym chain Planet Fitness jumped 13% after it reported better-than-expected earnings. In a Nov. 4, call CEO Christopher Rondeau said membership levels reached 97% of their all-time peak last quarter as more than 15 million people joined Planet Fitness and the number of franchises grew. This helped the company’s revenue grow by more than 46% from the previous year.

It’s a reversal of fortunes for the chain, which saw its stock drop from $88 to $24 a share in March 2020. The surge in revenue also suggests that Planet Fitness’s low-cost subscriptions—which run as low as $10 a month—are an easier sell than the $39 a month it costs for Peloton rides.

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