Why did Peloton stock slump today? Wall Street is over 'Work from Home' names

African-American man on exercise bike at home

kali9

Shares of Peloton Interactive (NASDAQ:PTON) fell nearly 10% Tuesday amid overall weakness in stay-from-home names, with the fitness company’s stock posting its third straight session of losses.

PTON fell as much as 10.1% before partly recovering to end Tuesday’s session at $8.71, down 8.8% for the day.

Peloton (PTON) has been under pressure since the company announced dismal FQ3 earnings and issued disappointing guidance in May, highlighted weakening subscriber growth. Shares have fallen 32.5% since PTON’s close on May 10, when the company reported FQ3 results.

In fact, investors and analysts have been losing interest for more than a year in PTON and other stocks that benefited from the COVID-inspired work-from-home trend. All told, Peloton (PTON) has fallen by some 95% since its shares peaked in January 2021 at $171.09 intraday.

Work-from-home stocks have suffered from a return to working from the office, coupled with rising inflation that has many consumers increasingly spending money on bare essentials.

Other work-from-home names also showed weakness on Tuesday, including Okta (OKTA) -8%, Zoom Video Communications (ZM) -5.4%, DocuSign (DOCU) -5%, monday.com (MNDY) -4.8%, Etsy (ETSY) -3.3% and Asana (ASAN) -2.9%. The Direxion Work From Home ETF (WFH) lost 3.7%.

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