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Peloton Shares Surge 16% Despite Massive Nasdaq Loss As Coronavirus Increases Demand For In-House Fitness

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Peloton Shares Surge 16% Despite Massive Nasdaq Loss As Coronavirus Increases Demand For In-House Fitness

Peloton Interactive Inc. (NASDAQ: PTON) shares surged during Monday's trade as investors responded to increased demand for its at-home fitness products in the wake of the novel coronavirus (COVID-19) outbreak.

What Happened

Peloton on Monday extended its free trial for all new users from the existing 30 days to 90 days as federal and state governments in the United States ask citizens to avoid non-essential social gatherings.

The startup that went public September last year offers on-demand fitness content for users of its platform or exercise equipment.

The surge in Peloton's shares came at a time when the wider Nasdaq index dropped 12.32% the same day at 6,904.59 as the number of coronavirus cases rose to 4,661 in the country.

The fitness company isn't the only company that is seeing increased demand for its products or services during the outbreak as a majority of the businesses are seeing increased losses.

The teleconference platforms that enable remote work, including Zoom Video Communications (NASDAQ: ZM), Slack Technologies Inc. (NYSE: WORK), and Microsoft Corporation's (NASDAQ: MSFT) Teams are seeing as much as fivefold surge in demand, as reported by Reuters earlier.

Price Action

Peleton's shares closed 12.83% higher at $22.25 on Monday and added another 3.37% in the after-hours session.

Photo Credit: Courtesy of Peloton.

 

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