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Peloton plunges after short-seller warns of cheaper competition

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Shannon Stapleton | Reuters

Peloton shares skidded 6.6% Tuesday after a Citron Research short-seller note pointed to “clear flaws” in the exercise company’s business model and an “overly promotional” management team that is “trying to justify an unrealistic valuation.”

The report also reiterates points made by other short sellers of Peloton, including comparisons to GoPro and Fitbit, the track record of fitness products in the marketplace and dependence on “spin class trend and fitness fads.”

Citron gives credit to Peloton for creating a product that incorporates interactive classes into its hardware but notes that the company has not innovated its product “in a meaningful way since the…



Source cnbc.com

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