Peloton falls 22% after earnings reveal plunging subscribers and steep cost of bike seat recall

• Peloton stock cratered on Wednesday after the fitness equipment company reported major subscriber losses.
• Peloton lost 29,000 subscribers over the past quarter and burned through an extra $40 million dealing with a bike seat recall.
• Shares have been on a two-year slide as the company struggles to recreate its pandemic-era success.

Peloton stock plummeted on Wednesday shortly after the company reported its earnings for its fourth fiscal quarter, revealing major subscriber losses and huge costs associated with addressing an unexpected bike seat defect that resulted in a recall.

Shares of the stock plunged 22% to trade at $5.40 on Wednesday. The stock is down around 33% since January.