This is why Peloton stock dropped sharply today

Peloton was very loved as a high flyer coronavirus pandemic stock play. The stock rallied really fast within a short period of time and it became one of the most popular stocks to own among many investors. It was up over 300 percent year to date. However, the stock has been selling off in the past few days due to two reasons. 

Peloton (PTON) is a home fitness company that sells its own Cycling bikes, treadmill, and other home workout equipments. The company has been around before the pandemic but it became very popular after the Coronavirus forced many fitness companies to close shops. 

As result, many people began saying good things about Peloton stock and a lot of investors bought the stock and it kept rising. Peloton (PTON) reached 52 weeks high of $139.75 before it starts to dip.  It's now selling at $125.73 per share as of today. 

Why Peloton Stock is Selling off

If you are wondering why Peloton stock is selling off, these are the two main reasons why. 

1. Peloton did a recall on some of their bikes due to pedal issues that have injured some users. 
2. Peloton was downgraded by Goldman Sachs from Buy to Neutral 

You can read about Peloton recall here -  Peloton Recall 

To read about the downgrade, read it here Goldman Sach' Downgraded Peloton to Neutral