Opinion: Peloton’s controversial television ad didn’t have the negative effect everyone thinks

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Peloton’s controversial television ad didn’t have the negative effect everyone thinks GlobeBusiness

Actors are pictured from 'The Gift That Gives Back' exercise bike commercial by Peloton, obtained Dec. 4, 2019.David Goldreich is a professor of finance at the University of Toronto’s Rotman School of Management

I was barely aware of Peloton Interactive Inc. before, probably because I am not in their target market of buyers of high-end WiFi-enabled exercise equipment. However, many people do know the brand, as some 1.4 million sweaty people subscribe to their fitness service, which is the heart of their business model.The most wildly off-base narrative, picked up in headlines around the world, was that Peloton’s market value dropped by US$1.5-billion because of the controversy.

Google Trends is a helpful service that reports the popularity of Google searches over time. It has been used in a number of academic studies over the past decade to show how increased attention relates to a company’s stock price. Google Trends shows that searches for the word “Peloton” rose above its normal level a few days before the share place decline, approximately coinciding with the release of the Christmas commercial.

 

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globebusiness there is no such thing as bad (free) Press ? ..I am old school..if the cash regerster does not ring...it's bad

globebusiness Well I’m not running out to buy one.

globebusiness A bunch of perpetually offended fools on the internet isn't a controversy.

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Peloton tumbles after short seller warns of competitionPeloton tumbles after short seller warns of competition GlobeInvestor globeinvestor There's a fundamental flaw in their business: low barrier to entry. All it takes is: stationary bike + iPad + app with videos and you can have many competitors! I can't believe there are morons who invested in this company, worse, 'analysts' who recommended the stock!
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