Peloton (PTON) Forced to Recall 833,000 Bike+ Units Over Seat Defects—Investors Left Pedaling Backwards
Peloton hits another bump in the road as its flagship Bike+ faces a massive recall.
The $2,245 connected fitness bike—once the darling of pandemic-era investors—is now under scrutiny after reports of seat failures. Nearly a million units affected. Cue the shareholder groans.
Recall roulette strikes again. Another ‘premium’ product failing basic durability tests while burning cash faster than a HIIT session. Maybe next time they’ll bolt the seats on properly—or just pivot to metaverse spin classes.
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The CPSC says that anyone who owns one of these bikes should stop using it right away. Peloton is offering a free replacement seat post that customers can install themselves. The company said that customer safety is its highest priority and encouraged users to request the new part as soon as possible. However, this situation is not new for Peloton. Indeed, last year, the company recalled 2.2 million of its original Bike models for a similar issue involving the seat post.
Therefore, this is Peloton’s fifth recall since the company was founded and adds to the challenges it has faced since the pandemic ended, which led to a slowdown in demand for home fitness equipment. Nevertheless, Peloton recently launched new products, raised prices, and introduced new features in an attempt to rebuild momentum heading into the key holiday shopping season. Notably, the company will report its fiscal first-quarter 2026 earnings later today, which is normally its biggest quarter for hardware sales. Analysts expect EPS to come in at $0.01 on revenue of $540.7 million.
Is PTON Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PTON stock based on seven Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PTON price target of $10.46 per share implies 57.2% upside potential.
