A monitor displays Peloton Interactive Inc. signage during the company's initial public offering (IPO) across from the Nasdaq MarketSite in New York, U.S., on Thursday, Sept. 26, 2019.

Shares of Peloton extended their two-day losses, trading down as much as 8.9% on Wednesday, following a critical short-seller note from Citron Research that gave the in-home exercise bike company a meager $5 price target.

Since its IPO in late September, Peloton shares have traded between roughly $20 and $30 per share.

The short-seller cautioned that cheaper competition threatens to hammer the stock, especially after the company's lock-up period ends in March 2020. The stock fell about 6% on Tuesday after the note was released.

The company's IPO was highly anticipated, though the stock debuted down 11% from its initial pricing of $29 per share. At the time of its debut, the company ranked as the second-worst public offering of a unicorn, or company privately valued at over $1 billion, this year.

Since its IPO, Peloton shares are up approximately 30%. The company currently has a market capitalization of roughly $9 billion.

Shares of Peloton closed at $32.03 Wednesday, down roughly 2% for the day.

Disclosure: CNBC parent Comcast-NBCUniversal is an investor in Peloton.