By Dhirendra Tripathi
Investing.com – Peloton stock (NASDAQ:PTON) stock fell 4% in premarket trading on news that Old Dominion Freight Line (NASDAQ:ODFL) will replace the stock in the Nasdaq 100.
Old Dominion will replace the maker of fitness equipment in other indices as well, including the Nasdaq 100 Equal Weighted Index and the Nasdaq 100 Ex-Technology Index. All the changes are effective Jan. 24.
Much as the tweak is an acknowledgement of Old Dominion’s growing business in a boom time for logistic businesses, it also reflects the fall of Peloton, one of the biggest winners of the pandemic because shut-in people used its machines to exercise at home.
As the pandemic waned, the company struggled to retain its clients as people returned to their walks and runs and to gyms.
Its attempts to tap the mass market by lowering the price of its flagship exercise bike fell flat.
The company also struggled with the recall of its treadmill machine. The stock now trades around $32 a share, less than one-fifth of its high of $166.5 struck less than a year ago.
On the other hand, Old Dominion’s stock has almost doubled in a year and trades about 15% off its high. The stock was up 3% in premarket.
Late last month, Raymond James analyst Aaron Kessler drew attention to another soft quarter for the company amid increasing costs and supply chain bottlenecks.
For the second quarter ended December, Peloton expects revenue to come in between $1.1 billion and $1.2 billion. For the full year, the company has guided for revenue of $4.4 billion to $4.8 billion.