Peloton Stock Is Climbing Higher Wednesday: What's Going On?

Peloton Interactive, Inc. shares are trading higher Wednesday. On Tuesday, a report suggested the company is launching a resale market for used bikes and treadmills.

The Details: According to CNBC, Peloton has rolled out Repowered, a platform that lets users list their used equipment and apparel, with pricing guidance provided by a generative artificial intelligence tool.

Sellers will receive 70% of the sale price, with the remainder shared between Peloton and its resale partner Archive. They will also get a discount toward new equipment. Buyers will benefit from a lower activation fee, which the company said is dropping from $95 to $45 for used products.

Peloton said buyers will be able to view the equipment's history on the listing and can choose to have it delivered for an additional fee.

The company also said that as of last summer, connected fitness subscriptions from customers who purchased hardware through secondary channels were up 16% year-over-year.

Repowered launched as a beta version in New York City, Boston and Washington D.C., with plans to expand across the United States in the coming months.

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PTON Price Action: At the time of writing, Peloton shares are trading 11.2% higher at $7.40, according to data from Benzinga Pro.

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