Peloton ticket sales resume as ‘Sex and the City’ reboot adds to image problems

Logo Peloton Interactive Inc. on a stationary bike at the company’s showroom in Dedham, Massachusetts, USA, on Wednesday, February 3, 2021.

Adam Glanzman | Bloomberg | beautiful pictures

Peloton InteractiveFriday’s stock move comes with a spoiler warning.

The connected fitness company’s bike pushed a major plot point in the “Sex and the City” reboot on HBO Max, and the company’s response to the news has raised questions among investors about the company’s handling of the image.

Additionally, Peloton was downgraded on Friday, raising ongoing concerns about weakening demand for its products. Credit Suisse analyst Kaumil Gajrawala cut the company’s price target by more than half, from $112.00 to $50, when he changed the stock’s rating from good to neutral.

Shares of the company hit a 52-week low of $37.67 in Friday trading and ended the day down 5.4% at $38.51. On Thursday, the stock fell 11%. It was also the premiere date of “And Just Like That…”, the latest iteration in the “Sex and the City” series, with the first episode featuring a dramatic scene involving Peloton’s Bike.

Shares of Peloton are down nearly 75% for the year, giving them a market value of about $12.6 billion.

Peloton was widely considered the winner of last year’s pandemic, along with home improvement companies and streaming services. When people stayed home and skipped the gym, they bought equipment and established their own home gyms. That backdrop has changed because people got the Covid vaccine and started to resume old habits.

Due to slowing sales, the company hundreds of dollars off its original bike and enhance marketing efforts. It also faces regulatory scrutiny and announced a voluntary recall of its treadmills in May, following reports of one death and dozens of injuries.

(The sequel to this story contains a trailer for the first episode of “And just like that…”.)

In recent weeks, Peloton has slashed Its full year forecast and frozen recruitment. It made headlines again on Thursday after one of the main characters of “And Just Like That…”, Mr. Big, died after a 45-minute Peloton class.

Peloton issued a statement to various media organizations from Dr Suzanne Steinbaum, a cardiologist and member of the company’s health and wellness advisory board, said she was saddened to learn of Mr. However, she hit it off into his unhealthy habits.

“Mr. Big has lived what many call a lavish lifestyle – including cocktails, cigars and big steaks – and is at serious risk because he suffered a heart attack earlier in Season 6.” , she said in a statement. These lifestyle choices and perhaps even his family history, often a significant factor, were the likely cause of his death. Riding his Peloton bike might even help delay his heart event. “

BMO Capital Markets analyst Simeon Siegel said Peloton’s role in “Sex and the City” could point to potential troubles with the brand. He mentioned reports that the company knew about product placement, but didn’t know how it would play into the show’s plot.

“While unlikely to have an impact on sales, this raises the question of whether PTON is losing control of its storytelling, perhaps its greatest achievement,” he said. it so far”. “While all PR is supposed to be good PR, it’s hard to ignore the wave of change in Peloton public perception.”

Siegel has rated the company’s stock as underperforming, with a price target of $45.00.

There is no mention of the episode of “Sex and the City” in Credit Suisse’s research note. Instead, Gajrawala pointed to the more fundamental problems the company faces in the coming year. He said Peloton’s fitness equipment is selling harder because people are going out a lot, increasing the likelihood that “growth isn’t low.” [fiscal year 2022.]”

Another company, Lululemon, have also had trouble with exercising at home. It buy back Mirror, for $500 million last year. However, on Thursday, it equipment sales forecast cut.


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