20,000 Peloton Members <br />Cancel Subscriptions, , Cause Stock to Plunge.<br />In May of this year, Peloton announced <br />that it was recalling 2 million bikes over a safety hazard imposed by the product's adjustable seat.<br />In May of this year, Peloton announced <br />that it was recalling 2 million bikes over a safety hazard imposed by the product's adjustable seat.<br />As a result, 20,000 members paused their subscriptions until they received a replacement seat post, CNN reports. .<br />The drop in subscription payments cost the company $40 million, according to its latest earnings report. .<br />Early trading on Aug. 23 saw <br />Peloton shares sink 20%.<br />According to Peloton, the amount <br />of requests they received for new seat <br />posts was "more than we expected.".<br />Only about half of the requests <br />have been fulfilled so far.<br />The remainder will likely be completed <br />"by the end of September," CNN reports. .<br />According to Peloton, its latest earnings report <br />is a "reminder we operate a seasonal business.".<br />The slowdown exceeded our expectations through May and through the first three <br />weeks of June as consumer spending <br />shifted toward travel and experiences, Barry McCarthy, Peloton CEO, via letter to investors .<br />Then eight weeks ago the trend reversed itself, and we began to see a reacceleration in hardware sales, Barry McCarthy, Peloton CEO, via letter to investors
