Cathie Wood ARK ETF Gives Peloton a Vote of Confidence After Treadmill Recall

Peloton Interactive (NASDAQ: PTON) having to recall all of its treadmills due to the possibility they could cause life-threatening injuries to users, children, and pets has a number of analysts questioning the company's valuation. Star money manager Cathie Wood's ARK Next Generation Internet (NYSEMKT: ARKW) exchange traded fund (ETF) scooped up an additional 141,000 shares, spending around $11.7 million to give the leader in connected home fitness a needed vote of confidence. Analysts wondered whether the massive recall, which included over 126,000 treadmills -- the entire inventory of Tread and Tread+ treadmills sold -- meant Peloton had exceeded its capacity to effectively manage its business.