Peloton Climbs Monday, Just Like That

Peloton (NASDAQ:PTON) – The fitness equipment maker rebounded Monday after falling 7% over the past three sessions. Peloton released an ad featuring actor Chris Noth promoting the value of the company’s equipment, after his character’s death in the “Sex and the City” reboot following a Peloton ride.

Peloton appears to have acted quickly to the HBO plot twist as it has previously stated that it was unaware of the script when it approved real-life Peloton instructor Jess King to be included in an episode of "And Just Like That."

Peloton released a response, explaining that while it knew the Peloton Bike would be featured in the show, it did not know how the storyline would progress.

Dr. Suzanne Steinbaum, a preventative cardiologist on Peloton’s health and advisory council, added that the character’s "extravagant lifestyle — including cocktails, cigars, and big steaks," as well as his family history, ultimately were to blame. Furthermore, she explained that riding the Peloton Bike may have delayed his heart attack instead of causing it.

On Wall Street, analysts do not anticipated a big rush of cancellations due to the HBO episode, but are questioning the company's "Although unlikely to impact sales, it does question whether PTON is losing degrees of control over its storytelling, perhaps its greatest achievement to date," warns BMO Capital analyst Simeon Siegel.

Credit Suisse mentioned that Peloton is spending more on advertising and decreasing prices as the population starts returning to in-person gyms. This could potentially "change the economic model."

Peloton also reduced its fiscal year 2022 guidance for new subscribers and sales during its last earnings release.

PTON shares $1.26, or 3.3%, to $39.77