Peloton's (NASDAQ: PTON) stock has been on fire recently, in part because the company is focused on a strategy that works. It needs to sell high-end bikes to consumers and make money on their subscriptions.

Long focused on growth at all costs, Peloton has turned its sights to profitability and has had to become more creative as it tries to reach new users.

Peloton plans to sell its deluxe stationary bike at Costco this holiday season as the struggling connected-exercise company seeks to broaden its customer base.