(Bloomberg) -- Peloton Interactive Inc. extended declines on Tuesday following news that Amazon.com Inc. is launching a service called Halo Fitness to rival offerings from Peloton and Apple Inc.
The stock dropped as much as 5.5% to its lowest level in more than four months. Peloton was already trading lower ahead of the news, participating in a broad selloff of technology stocks spurred by rising bond yields. Apple is down as much as 2.5% on Tuesday while Amazon has slid as much as 3.4%.
Amazon’s Halo membership includes “hundreds of workouts” through an app and can track body composition and sleep patterns, according to the company’s website. Amazon is selling a Halo Band that works with the fitness service.
Peloton is best known for its technology-infused exercise bikes, but it also offers subscriptions to workout programs. It sells a connected fitness subscription for access to classes through its products and a broader digital offering with a variety of workouts like strength training and yoga, according to a filing. In the fiscal year ended June 30, subscription revenue accounted for about 22% of total sales, data compiled by Bloomberg show.
Earlier this month, Peloton fell after Apple touted updates to its Fitness+ service during an event.
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