Peloton
Peloton's $50B peak was pandemic-inflated. When gyms reopened, demand evaporated and the stock crashed 98%.
2012 → 2024
$1.7B
Fitness/Hardware
USA
IdeaProof AI Failure Score
What Happened: The Timeline
2012
Peloton founded by John Foley
Sep 2019
IPO at $8B valuation
Jan 2021
Peak: $50B market cap during pandemic fitness boom
2022
Demand crashes post-pandemic, recalls, CEO ousted
2024
Stock down 98%, multiple restructurings
Root Causes
Peloton was the pandemic's biggest winner-turned-loser. The connected fitness company reached a $50B market cap as locked-down consumers bought $2,500 bikes and paid $44/month for classes. When gyms reopened, demand cratered. Peloton was stuck with massive manufacturing commitments, warehouse inventory, and a cost structure built for hypergrowth. The stock fell 98% from its peak. Multiple CEO changes, layoffs affecting 50%+ of staff, and a shift to a subscription-first model followed.
Sources & References
Could This Failure Have Been Prevented?
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