Is Peloton going out of business? It’s market cap is now just 3% of lockdown peak after bosses today admit it still can’t make a profit and shares hit lowest ever level – what does it mean for owners of its fitness bikes?

Millions of Americans bought $1,500 Peloton fitness bikes during the lockdown — and the company couldn’t make them fast enough.

Shares soared and the company was worth more than $45 billion at the end of 2020.

At the time, it traded above $150 per share at the end of that year and into 2021, peaking at $170.

But this morning, shares fell 22 percent to $4.22, leaving the company once tipped to kill gyms and rule the fitness world worth just $1.5 billion.

And the legion of fans are also wondering if the high-octane online classes will continue – or if their bikes will end up as expensive coat hangers.

But despite Wall Street voting for Peloton’s progress (or lack thereof) in boosting sales and making money, CEO Barry McCarthy has no plans to throw in the towel.

He has promised that there will be a change in the situation in 2024.

In the past, experts have said that Peloton could be bought by a tech giant called Apple. As the stock price gets cheaper, that becomes more likely – as the cost to buy Peloton falls as the stock price falls.

In a letter to shareholders, McCarthy said: “We continue to look for ways to drive growth across multiple vectors.

‘Several of these new initiatives have performed strongly. Some don’t.’

He tried to give a notable boost to the college market. It was hoped that a partnership with Mighigan University in August with co-branded bicycles would boost sales to students, colleges, alumni and boosters. It didn’t work and has now been demolished.

Peloton was one of the biggest winners of the Covid lockdowns as Americans bought their exercise bikes and paid $40 a month for online classes. A rowing machine and treadmill were also rolled out.

Incredible sales growth during the height of the coronavirus pandemic has seen the share price rise more than fivefold in 2020 due to lockdowns.

But sales of the pricey bikes and treadmills started to slow in 2021 as vaccines gave people more freedom to leave their homes, including visits to the gym.

It has tried to boost revenues by selling subscriptions to fitness, running and yoga classes through its phone and tablet apps – rather than just selling equipment and subscriptions to classes on them.

Sales fell to $744 million in the second quarter, which company executives consider the most important quarter. This amounts to a decrease of 6 percent compared to a year ago and no less than 34 percent compared to two years ago.

The company reported a net loss of $194.9 million for the three-month period ending in December, compared with a loss of $335.4 million a year earlier.

The number of subscribers using Peloton’s equipment reached 3 million in the second quarter, up 1 percent from last year.

But the number of subscribers to the app fell by 16 percent to 718,000.

Peloton hopes partnerships with Amazon.com and Lululemon Athletica will make its products and services more accessible.

The company is also betting on a boost by reintroducing the high-end Tread+ priced at $5,995, two years after sales were temporarily halted due to safety concerns.

Still, demand for its equipment was lower than expected as inflation-weary customers cut back on spending during the holiday season, typically the strongest for hardware sales.

“While our paid subscriptions for connected fitness exceeded our expectations, our hardware sales were slightly weaker than we expected,” Chief Financial Officer Elizabeth Coddington said on a call with analysts.

Shares had already fallen 8.7 percent this year before today’s dismal results for the October to December quarter.

They were down in 2021, 2022 and 2023 – and are down more than 90 percent from pandemic highs.