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PTON Stock Runs Into the Spotlight Thanks to Unexplained Peloton Outage

Today, a range of outages have hit major companies hard. From Slack to AWS and Peloton (NASDAQ:PTON), today’s outages have investors and users scratching their heads. For Peloton investors, these outages on top of market turmoil today h…

Today, a range of outages have hit major companies hard. From Slack to AWS and Peloton (NASDAQ:PTON), today’s outages have investors and users scratching their heads. For Peloton investors, these outages on top of market turmoil today have sent PTON stock 3% lower at the time of writing.

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Continued Russian aggression toward Ukraine has investors on edge today. All major indices have moved lower, with tech stocks once again leading declines. For Peloton, a stock that’s now down more than 75% from its 52-week high, these macro pressures are not welcome.

However, it’s the major outages that some investors are focusing on today as potential downside catalysts that could accelerate this negative momentum. Currently, the source of these outages is unknown. However, Peloton has noted that its major outage has been resolved, with fitness classes back online as of around 12:15 p.m. Eastern.

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Of course, any sort of disruption to Peloton’s service is something that will concern investors. However, whether this is a one-time event, or potentially something more nefarious, remains to be seen.

Let’s dive into what investors are watching with Peloton right now.

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PTON Stock Declines on Major Outage

Today, Peloton enthusiasts got a morning off. Unfortunately, this was not a scheduled morning off following a long weekend that potentially involved various indulgences. Rather, the company’s platform was down for more than an hour, impacting both Peloton bikes and treadmill machines over this time.

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Understandably, frustration appears to have built on social media following this outage. For Peloton, a company that recently laid off a significant portion of its workforce and appears to be in restructuring mode, the timing of this outage was certainly not ideal.

Now, the question many investors have is to what extent this event will impact churn in the coming quarters. Peloton’s growth, or lack thereof, is already a thorn in the side of investors. Should churn pick up, this stock is one that could see continued downside pressure for some time to come.

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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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