Peloton shares drop 25% after posting wider than expected loss, falling sales

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Peloton shares drop 25% after posting wider than expected loss, falling sales
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Peloton's shares plunged 20% after the company fell short of Wall Street's quarterly expectations and reported a loss of $241.8 million.

Jeremy Moeller | Getty Imagesshares dropped by about 20% in premarket trading Wednesday after the connected fitness company posted a wider than expected loss but beat Wall Street's sales estimates.

"Peloton's FYQ4 performance is a reminder we operate a seasonal business," McCarthy wrote in a letter to shareholders. In May, it announced a major rebrand under the guidance of its new chief marketing officer Leslie Berland that positioned Peloton as athat is just as invested in its app as it is its pricey connected fitness products, such as its Bike, Tread and Row.

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