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Why Peloton Stock Fell Over 7% on Monday

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Shares of popular at-home exercise equipment maker Peloton Interactive (PTON - Free Report) fell 7.3% today after the U.S. Consumer Product Safety Commission said consumers should stop using the company’s treadmill, called Tread+, if small pets or kids are around. The announcement comes one month after Peloton disclosed an accident involving the Tread+ that resulted in the death of a child; the agency also said it knew about 39 other incidents with the treadmill.

Peloton called the advisory “inaccurate and misleading” and CEO John Foley said the company has no plans to stop selling the Tread+.

The recent warning could be a challenge for Peloton as it looks to expand its business with additional treadmill and running-related products and online content

PTON stock rose an eye-popping 434% in 2020 but is down about 30% so far year-to-date.

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