Peloton pops 8% as company announces corporate wellness program and pushes into wearables market

Peloton LA

Peloton climbed 8% Tuesday after it announced it would offer discounted products and services through a new corporate wellness program.

The stock received a second wind on a Bloomberg report that said the company was making a push into the wearables market.

Tuesday morning, Peloton announced a corporate wellness program that gives employees discounted access to its fitness content, bikes, and treadmills. The pitch to companies is that providing Peloton products to employees will be good for team building. Inaugural corporate partners include Samsung, SAP, and Wayfair.

The pre-market announcement gave Peloton’s shares a 5% pop within a half hour of the opening bell.

Around midday, Bloomberg then reported that the company was mounting a venture into the wearable device market with a Bluetooth heart-rate armband, citing updates to the source code in the Peloton iPhone and iPad apps.

According to Bloomberg, the Peloton Heart Rate Monitor will strap to a user’s arm to capture precise data on their workout. The company already sells another product by the same name which straps to a user’s chest.

Peloton didn’t respond to the Bloomberg report, but shares immediately jumped an additional 2% on the news. The stock built on its gains throughout the trading day, and closed at $117.17, up 8.4%.

Read the original article on Business Insider