Peloton investors face new reality as bike maker’s costs hurt profits

Peloton investors were in for a rude awakening on Thursday.

Many expected to see the connected fitness equipment maker report slowing sales. Gyms have reopened, and outdoor runs and vacations beckoned during the summer months. What investors hadn’t anticipated was a 20% price cut in the company’s top-selling product and a ramp up in marketing spending.

Growth is slowing, and it’s less profitable growth.

Roughly $2.9 billion of Peloton’s market capitalization was lopped off on Friday, the day after the pricing announcement was made and the company reported a…