Shares of Peloton Interactive Inc. rose. on Thursday after the connected exercise platform announced an exclusive partnership with TikTok.
The deal will create a dedicated hub for Peloton on the video-based social network with personalized Peloton content, the two companies said in a joint statement. TikTok users will have access to Peloton's live classes, instructor series, celebrity collaborations, and more. The center will be available in the United States, Canada and the United Kingdom
“Our team is excited to complement the already thriving fitness content on TikTok by bringing the magic of Peloton to new audiences, in entirely new ways,” Ollie Snoddy, vice president of consumer marketing at Peloton, said in a statement.
Peloton PTON stock,
The stock jumped 14% on Thursday after the deal was announced, and was up an additional 7.5% in after-hours trading.
Last May, Peloton rebranded itself as a fitness platform, moving beyond exercise equipment and focusing on content and subscriptions as it looked to revive dwindling sales.
After soaring during the pandemic, Peloton shares have hit the ground running in a hard way, falling about 96% from their high of $167.42 in January 2021.
In November, the company reported disappointing fiscal first-quarter earnings, posting a worse-than-expected net loss of $159 million, or 44 cents per share. CEO Barry McCarthy told shareholders at the time that Peloton had been “less successful at engaging and retaining free users and converting them to paid memberships than we expected,” adding that the transition would be a “long-term” process.
Peloton shares are down 29% over the past 12 months, compared to the S&P 500's SPX gain of 23% over that time.