After Peloton exercise bike appeared in the new episode of the sequel and it was claimed that it led to a 12% drop in the stock, the company filmed and produced in less than 48 hours a new parody commercial starring series star Chris Knott. Will it help a stock that has been collapsing for many months?
In response to the controversial performance of her exercise bike in the premiere episode of “Just Like That”, Peloton released a new parody commercial starring “Sex and the City” star Chris Knott and actor Ryan Reynolds, under the slogan: “He’s Alive” “.
In the advertisement, Mr. Big – who is Noth – who died of a heart attack after training on Peloton’s exercise bike in the premiere episode of the new series, now sits healthy and intact alongside Peloton’s fitness instructor, Jess King. “I feel great. Riding again? Life is too short not to do that,” Noth says.
Then the announcer – aka Reynolds – opens with a particularly short and quick speech and says: “And just like that, the world remembers that cycling frequently benefits the heart, lungs … strengthens the heart muscle, lowers heart rate and reduces blood fat levels. He lives “. According to the company, the commercial was produced and filmed in New York in less than 48 hours, apparently to respond quickly to an episode that also came out just a few days ago.
— Ryan Reynolds (@VancityReynolds) December 12, 2021
This is, as mentioned, Peloton’s response to the premiere episode of the new HBO series that allegedly took out PPeloton’s brand in a bad way and linked it to the character’s death. What’s more, the world has linked the episode airing to a 12% sharp fall in the stock of the company that manufactures fitness equipment.
Although it is only a TV series, the company took the matter seriously and issued an official statement with a cardiologist’s opinion, claiming that the character’s death was not related to her training on the bike but to the “ostentatious lifestyle” that accompanied it and included many drinks, cigars and cocktails. “It is possible that Peloton’s cycling even helped postpone his heartbreaking event,” read a statement from the company, which claims to have approved the use of the bikes but did not know the plot context in which they were presented in the episode.
At the same time, it is likely that the declines were not only affected by the controversial media appearance of the bike, but mainly by concerns surrounding its economic model.
This is a company that benefited greatly from the closures of the Corona crisis, when gyms were closed and people had to work out in homes. During 2020, its stock rose by over 440%. At the same time, with the return of the economy to normal activity, the demand for Peloton products has dropped significantly and now investors fear that Peloton will not be able to keep up with the competition.
At the same time, the company has been dealing with other issues for several months, including examinations by regulators after the company announced a recall of its treadmills last May following reports of one death and dozens of injuries. In addition, the company has cut its exercise bike prices by hundreds of dollars in hopes of boosting sales.
Last Friday, a Credit Suisse analyst downgraded the stock and cut its target price by more than half, to just $ 50. Following the recent declines, the company’s stock has completed a 66% fall in the last six months and is at a 52-week low.