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Illustrated collage of a Peloton bike, a laptop and a fan of cash.

Illustration: Aïda Amer/Axios

Peloton stock fell by as much as 25% on Thursday, following a CNBC report that the connected fitness company will temporarily halt production on its bikes and treadmills.

Why it matters: Peloton is viewed by many as a proxy for consumer behavior in the pandemic era, as its popularity surged when gyms closed and people wanted to exercise at home.

  • The company, which is in a pre-earnings "quiet period," has not yet publicly responded to the CNBC report.

The big picture: Peloton shares hit an all-time high of $151.72 per share in December 2020, giving it a $45.7 billion market value. Today they opened at $32.05 per share, for a $9.7 billion market cap, before the CNBC report and subsequent price decline.

  • In addition to the production stoppage, Peloton has dealt with controversies involving treadmill safety and the "death" of a fictional character who was riding its bike.

What they're saying: Peloton on Thursday evening released preliminary earnings information and a letter to company employees from CEO John Foley.

  • Within the letter, Foley said "rumors that we are halting all production of bikes and Treads are false." He did, however, leave open the possibility of upcoming layoffs, which were mentioned in an earlier CNBC report.
  • He also said that Peloton has identified an internal "leaker," and is "moving forward with the appropriate legal action."

Editor's note: This article has been updated with comment from Peloton.