Stock Market Today, Feb. 5: Peloton Slides After Revenue Miss and Weak Guidance

Company Overview - Peloton Interactive (NASDAQ:PTON) provides internet-connected fitness equipment with live and on-demand classes, closing at $4.39, down 25.72% after Q2 results missed expectations and Q3 guidance disappointed [1] - The company has seen its stock price fall 83% since its IPO in 2019 [1] Financial Performance - Q2 sales slid 3%, and earnings turned negative, both missing Wall Street's estimates [3] - Management's guidance for $2.42 billion in sales for 2026 was below the consensus estimate of $2.48 billion [3] - Despite the challenges, Peloton's gross margins rose by 320 basis points, and it maintained a free cash flow (FCF) margin of 11% [4] Business Segments - Peloton's commercial business, which includes sales to gyms, hotels, and apartments, grew by 10% [4] - The company's 10 microstores generated sales that were 8 times higher per square foot than legacy stores, indicating potential for future sales rebound [4] Market Context - The S&P 500 fell 1.20% to 6,800, while the Nasdaq Composite lost 1.59% to close at 22,541, reflecting a broader market downturn [2] - Among peers in connected fitness equipment and subscription-based fitness services, Lululemon Athletica closed at $170.09, down 4.44% [2]