More than $10 billion wiped from Peloton's market cap since dismal earnings report

Roughly $10.4 billion has been wiped from Peloton’s market cap since last Thursday, amid doubts about the future growth prospects of the connected fitness company.

Shares closed Monday at $51.25, down 7.9% and extending losses from the week prior. During trading, the stock set a fresh 52-week low of $49.11.

Monday’s stock move came after a downgrade by Wall Street research firm Argus, which slashed its rating to hold from buy.

In a note to clients, analyst John Staszak said Peloton will face a number headwinds in the next year, as competition from gym chains and other connected fitness companies makes it harder for Peloton to expand its subscriber base. Heightened expenses also raise red flags, he said.

“We expect higher costs as the company invests in marketing and new products,” Staszak wrote. “Moreover, higher input prices and increased freight costs should pressure results.”

Peloton doesn’t expect to be profitable again until fiscal 2023. The company recently lowered the price of its original cycle, known as the Bike, by 20%. That has dealt a blow to its profits, as it makes less money per sale. Peloton is also still recovering from a treadmill recall and has ramped up marketing to build awareness for its recently redesigned Tread.

The stock dropped 35% on Friday, the same day the company implemented a temporary hiring freeze across all departments. At least 15 analysts lowered their price target on the stock before the weekend, after Peloton cut its full-year financial outlook.

Peloton had a market cap of roughly $45 billion to start the year, after its stock soared more than 440% in 2020. Now, its value is around $15.4 billion, and shares are down about 66% year to date.

—CNBC’s Michael Bloom contributed to this report.