Peloton has 'hit a growth wall' -analyst

Peloton said on Tuesday that it would replace its chief executive officer, cut jobs and appoint new board members as the company wrestles with waning demand for its exercise bikes.

Co-founder, John Foley, will step down as CEO and will become the executive chair, the company said.

Ives called Foley's exit a "jaw-dropper" as the company considers reported potential takeover offers from Amazon, Nike and Apple.

"I think the writing is on the wall that Peloton likely is going to have to pursue M&A options, as the growth challenges are almost Herculean going forward," said Ives.

Barry McCarthy, the former chief financial officer of Spotify Technology and Netflix, will take the helm from Wednesday.