Peloton Interactive Inc (NASDAQ:PTON) shares are trading lower Wednesday. What's going on?
Social media chatter surrounding Peloton seems to be picking up today. Some traders are highlighting a Seeking Alpha report, suggesting the company's app may be seeing demand weakness.
According to the report, UBS Evidence Lab data showed declining adoption levels of the connected fitness app in the U.S. UBS analyst Arpine Kocharyan reportedly noted that Peloton's share of downloads are declining year-over-year based on proprietary app analysis.
Meanwhile, the report points out that Planet Fitness Inc's (NYSE:PLNT) download volume has been surging over the last two months and taking market share.
However, this data could be skewed. Benzinga previously reported that Planet Fitness announced it would allow teenagers between 14 and 19 years of age to workout for free in its clubs from May 16 to Aug. 31. This seems to have caused the surge in download volume.
Related Link: Apple App Store Analysis: This Fitness App Just Passed Facebook, Snapchat, Amazon, Netflix And Disney+
JPMorgan analyst Doug Anmuth maintained Peloton with an Overweight rating and lowered the price target from $24 to $20 on Wednesday.
PTON Price Action: Peloton is making new 52-week lows today.
The stock closed down 4.16% at $9.45 at press time, according to data from Benzinga Pro.
Photo: courtesy of Peloton.
