Peloton Tumbles in Third-Worst Unicorn IPO Debut Since 2008 (3)

Peloton Interactive Inc. fell as much as 14.6% Thursday after raising $1.16 billion in its U.S. initial public offering, becoming the latest unprofitable startup to fail to win over investors in its trading debut.

Peloton’s shares opened at $27 and were down 13.6% from their offering price to $25.05 at 3:06 p.m. in New York trading, giving the company a value of $7 billion. The fitness startup sold 40 million shares for $29 each on Wednesday, after marketing them for $26 to $29.

It marks the third-worst trading debut in 10 years in the U.S. for companies that have raised ...