Peloton Rallies After Tapping Ford Executive as Its Next CEO (1)

Peloton Interactive Inc. shares soared after the fitness company named Ford Motor Co. executive Peter Stern as its next chief executive officer and delivered improving profitability.

Stern — who is currently president of Ford Integrated Services and previously served as a vice president for Apple Inc. — will join Jan. 1, the company said Thursday. Peloton also released quarterly results and forecasts that showed its cost-cutting efforts are beginning to boost the bottom line, even as revenue continues to fall.

The shares gained 28% to $8.50 in New York, Peloton’s biggest single-day rally in more than two months. The ...