HERE’S THE SCOOP:
- Peloton shares experienced a steep drop after an episode of the Sex and The City reboot prominently featured the exercise bike in a morbid plotline.
- Shares fell more than 5% the following day after nosediving 10% overnight.
- Peloton was aware of the product placement, but they didn’t know exactly how it would play into the plot.
Peloton shares experienced a steep drop after an episode of the Sex and The City reboot prominently featured the exercise bike in a key plotline.
The reboot, titled And Just Like That, begins with the shocking death of a central character: Mr. Big, who has a heart attack after using a Peloton bike.
The exercise company issued a statement from Dr. Suzanne Steinbaum, a cardiologist and member of the Peloton’s health and wellness advisory council, saying she was saddened by the news of Mr. Big’s heart attack. But she blamed his cardiac event on his unhealthy habits.
“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. 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,” Steinbaum said.
While Peloton was aware of the product placement in the show, the fitness company didn’t know how it would play into the plot.
“Although unlikely to impact sales, it does question whether PTON is losing degrees of control over its storytelling, perhaps its greatest achievement to date,” said Simeon Siegel, a BMO Capital Markets analyst.
“Although all PR is supposedly good PR, it’s hard to ignore the changing tide in Peloton’s public perception.”
Shares fell 10% in overnight trading after the episode premiered on HBO Max and hit a 52-week low the following day after another 5.4% drop.
Source: CBS News