Peloton stock sheds $4 billion in market value in 1 day over its treadmill debacle

Peloton stock sheds $4 billion in market value in 1 day over its treadmill debacle

Maggie Lu uses a Peloton Tread treadmill during CES 2018 at the Las Vegas Convention Center on January 11, 2018 in Las Vegas, Nevada.

Peloton shares closed Wednesday down nearly 15%, wiping $4.1 billion off its market value in one day, after the fitness equipment maker apologized for not voluntarily recalling both its treadmill machines over safety concerns sooner.

Since March 18, Peloton's market cap has shed $7.4 billion. That Thursday was when Peloton's CEO John Foley revealed for the first time that an accident involving a Peloton treadmill had resulted in a child's death. The company has since been in back-and-forth discussions with the U.S. Consumer Product Safety Commission regarding dozens of reported injuries tied to its machines.

Peloton's stock was a huge winner in 2020, with shares surging more than 400% for the year. Peloton's market valued peaked in mid-January at $49 billion. Investors rallied behind Peloton as it saw tremendous growth during the early days of the Covid pandemic.

Consumers were looking for ways to excercise at home, while gyms were shut down, and Peloton quickly became the option of choice for those who could afford its high-end cycles and treadmills. Peloton's 2020 revenue surged to $1.8 billion, from $915 million a year