Well that was weird.
Peloton Interactive (PTON) – Get Report shares were on the rebound on Wednesday a day after dropping as much as 6% on news that Amazon.com (AMZN) – Get Report and Peloton rival Echelon were launching a $499 “Prime Bike.”
Peloton stock was up 5.65% at $99.73 on Wednesday after an Amazon.com spokeswoman said the company has nothing to do with the new machine, widely touted by Echelon in a news release on Tuesday, and that it was not working with Echelon on any kind of interactive exercise product.
“This bike is not an Amazon product or related to Amazon Prime,” the Amazon spokeswoman said. “Echelon does not have a formal partnership with Amazon. We are working with Echelon to clarify this in its communications, stop the sale of the product, and change the product branding.”
The machine was listed on Amazon’s website for $499, a steep discount to machines offered by Peloton, but has since been listed as “currently unavailable.” A press release for the product from Echelon Fitness touting its work with Amazon also was deleted.
The prospect of a Peloton alternative priced at a fifth of the cost generated buzz on Tuesday – and declines in Peloton’s stock price, though Amazon quickly threw a wrench in the announcement.