By Christiana Sciaudone
Investing.com -- Peloton (NASDAQ:PTON)'s rebounding after Amazon (NASDAQ:AMZN) appears to no longer having anything to do with a competing and much cheaper product.
Shares rose 5.4% after Amazon distanced itself from Echelon Fitness, which makes a stationary bicycle akin to Peloton's at a fraction of the cost.
Earlier this week, Echelon was promoting the $500 EX-Prime Smart Connect Bike as having been developed in collaboration with the online retailer. Shares of Peloton, which sells bikes for $1,895 and up, dropped on the news that a cheaper version was on sale via Amazon Prime, and branded as Prime.
Amazon has disavowed any connection to the bike, which is no longer available on the website.
“This bike is not an Amazon product or related to Amazon Prime,” an Amazon spokeswoman told Bloomberg. “Echelon does not have a formal partnership with Amazon. We are working with Echelon to clarify this in its communications, stop the sale of the product, and change the product branding.”
Echelon sells a very similar bike at Walmart (NYSE:WMT).com.