Peloton Rebounds as Amazon Debunks $499 ‘Prime Bike’ OfferingSeptember 23, 2020
Peloton Interactive (PTON) – Get Report shares traded higher on Wednesday after Amazon.com (AMZN) – Get Report said it has nothing to do with purported new $499 “Prime Bike” being sold by Peloton rival Echelon.
Peloton stock was up 0.65% at $91 on Wednesday after an Amazon.com spokeswoman told Barron’s that it had nothing to do with the new machine, widely touted by Echelon in a news release on Tuesday, and that it was not working with Echelon on any kind of interactive exercise product.
“This bike is not an Amazon product or related to Amazon Prime,” the Amazon spokeswoman said. “Echelon does not have a formal partnership with Amazon. We are working with Echelon to clarify this in its communications, stop the sale of the product, and change the product branding.”
The machine was listed on Amazon’s website for $499, a steep discount to machines offered by Peloton, but has since been listed as “currently unavailable.” A press release for the product from Echelon Fitness touting its work with Amazon also was deleted.
Peloton has been on a tear over the past six months as fitness buffs have turned to the internet-connected workout-at-home machines and the company’s online interactive fitness classes as the coronavirus pandemic has kept many gyms closed.
The prospect of a Peloton alternative priced at a fifth of the cost generated buzz on Tuesday – and declines in Peloton’s stock price, though Amazon quickly threw a wrench in the announcement.