Peloton shares slumped on Friday after the premiere episode of the “Sex and the City” reboot gave one in all its units a cameo function that took a decidedly morbid flip.
Shares of the train bike firm fell greater than 5% Friday after plunging as a lot as 10% in in a single day buying and selling. The drop provides to Peloton’s latest stock market woes as the shares have misplaced greater than 73% of their worth since the yr began, battered by a raft of controversies, questions of safety and monetary headwinds.
And Credit score Suisse on Friday minimize the firm’s value goal to $50 from $112, with the analyst additionally lowering the stock’s ranking to impartial. The explanation wasn’t the “And Just Like That” reboot, nonetheless, however a slowdown in client spending that’s crimping the firm’s progress.
(Spoiler alert: The subsequent paragraph incorporates plot particulars of the preliminary episode, so solely proceed studying when you do not thoughts the reveal.)
The reboot takes up with three of the present’s authentic major characters —Carrie, Charlotte and Miranda —in center age, with companions, youngsters and work protecting them busy. Earlier than plans to eat out with Carrie, her associate Mr. Massive steps on his Peloton, his face exhibiting exertion — and perhaps ache — as he works out on his bike. After he dismounts, he clutches his chest and collapses in his lavatory.
Peloton did not instantly return a request for remark, however it issued a press release to the Los Angeles Occasions that blamed Mr. Massive’s demise on different life-style decisions.
“Mr. Big lived what many would call an extravagant lifestyle — including cocktails, cigars and big steaks — and was at serious risk as he had a previous cardiac event in Season 6,” Dr. Suzanne Steinbaum, a member of Peloton’s well being and wellness advisory council and a preventative heart specialist, mentioned in the assertion.
She added, “These lifestyle choices and perhaps even his family history, which often is a significant factor, were the likely cause of his death. Riding his Peloton Bike may have even helped delay his cardiac event.”
However the episode reminded buyers of a few of the points that Peloton has confronted in latest years, analysts famous.
“If you Google ‘Can a Peloton kill you,’ you will be faced with stories of the tragic incidents in America where a Peloton treadmill lead to the death of a child and multiple injuries,” mentioned Kevin Mountford, co-founder of economic providers agency Raisin UK in an emailed assertion.
Peloton earlier this yr recalled its Tread+ and Tread treadmills following greater than 70 incidents, together with the demise of 1 baby and 29 different cases the place customers sustained accidents reminiscent of damaged bones and cuts.
And whereas the firm was a pandemic darling throughout the preliminary lockdown — forcing folks to train indoors somewhat than at gyms and boosting gross sales of train gear — demand has since slowed. Final month, the firm instructed buyers it might seemingly lose extra money than it had anticipated in fiscal 2022 after gross sales stalled out.
Peloton’s darkish product placement sparked humor on social media, with some poking enjoyable at the morbid twist.
However the “Sex and the City” reboot solely provides to its woes with buyers, analysts mentioned.
“Now, with ‘And Just Like That…” utilizing the Peloton bicycle as a doable explanation for Mr Massive’s demise, it brings again into gentle the well being and security concern that troubled customers earlier this yr,” Mountford noted. “Stock buyers could have needed to promote their shares while they have been at a excessive value, and with stock value plummeting it meant that at a single time a great deal of buyers have been wanting to chop their losses with the firm.”