Peloton Stock Pedals Higher On Costco Partnership: What's Going On?

Peloton Interactive Inc PTON shares are trading volatile on Tuesday, initially spiking after the company announced a partnership with Costco Wholesale Corp COST for the holiday season.

What Happened: Peloton announced that Costco will begin selling the Peloton Bike+ in 300 of its U.S. stores and online on Nov. 1. Costco members will be able to purchase an exclusive Bike + bundle this holiday season through Feb. 15.

“The Costco brand is incredibly powerful and respected in the US and abroad. Costco members know they are shopping for high quality products from trusted brands with the best value,” said Dion Camp Sanders, chief emerging business officer at Peloton.

“We’re excited to learn from this first seasonal collaboration in the US and hopefully expand distribution of Peloton products to new geographic markets with Costco in the future.”

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The Peloton Bike+ is expected to retail for $1,999 in-store and $2,199 online, including delivery. Peloton’s all-access membership, which is required to access content on the Peloton Bike, costs $44 per month.

Through the partnership, Peloton said it aims to create additional exposure for its connected fitness experience among an affluent, net-new audience during the holiday season.

PTON Price Action: Peloton shares were up 2.55% at $5.34 at the time of publication Tuesday, per Benzinga Pro.

Photo: nyker from Shutterstock.