Peloton extends decline as Amazon launches rival fitness service

(Bloomberg) – Peloton Interactive Inc. extended the drops Tuesday following news that Inc. is launching a service called Halo Fitness to compete with offerings from Peloton and Apple Inc.

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The stock fell as much as 5.5% on Tuesday, but eased part of the slide to close 4.6% and the lowest level in more than four months. Peloton was already trading lower before the news, participating in a broad sell-off of tech stocks fueled by rising bond yields. Apple fell 2.4% on Tuesday, while Amazon fell 2.6%.

Amazon’s Halo membership includes “hundreds of workouts” through one app and can track body composition and sleep patterns, according to the company’s website. Amazon is selling a Halo Band that works with the fitness service.

Peloton is best known for its powered exercise bikes, but it also offers subscriptions to training programs. It sells a connected fitness subscription to access classes through its products and a broader digital offering with a variety of workouts such as strength training and yoga, according to a document. In the fiscal year ending June 30, subscription revenue represented about 22% of total sales, data compiled by Bloomberg shows.

Earlier this month, Peloton went down after Apple touted updates to its Fitness + service during an event.

(Updates the stock movements and the chart).

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