PTON stock warning: Is Peloton really declining because of ‘Sex and the City’?

Shares of Peloton Interactive (NASDAQ:PTON) had a sad year in 2021 after returning an incredible 395% in 2020. In fact, the manufacturer of training equipment for living at home has lost 73% of its value since the beginning of 2021. it also doesn’t help. PTON shares are currently trading below $ 40 for the first time since May 2020.

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What happened to the PTON stock?

Sex and the city is a reboot of HBO detailing the lives of a sex columnist and her three friends as they experience a dating scene in Manhattan. The original show boasts cult followers and is rated at 7.2 / 10 IMDb. The first episode of the reboot premiered yesterday. At the end of the episode, the character dies of a heart attack after completing a 45-minute ride with Peloton. Apparently this is a horrible image for Peloton.

Peloton issued a answer, who explained that although he knew that Peloton Bike would be featured in the show, he did not know how the story would progress.

Dr. Suzanne Steinbaum, a preventive cardiologist on Peloton’s Medical and Counseling Council, added that the character is “extravagant lifestyle – including cocktails, cigars and large steaks, ”as well as his family history, were ultimately to blame. In addition, she explained that riding a Peloton bike may have delayed his heart attack instead of causing it.

Analysts at BMO Capital Markets commented on the situation, explaining:

“Although unlikely to affect sales, he wonders if PTON is losing control of its storytelling, which is perhaps its greatest achievement to date.”

Bottom Line on Peloton

Things were worse, PTON stocks were reduced today by Credit Suisse to “neutral” from “surpass”. Analyst Kaumil Gajrawala cut the target price from $ 112 to $ 50, a 55 percent drop.

Peloton seems to have a stone road. Credit Suisse mentioned that Peloton spends more on advertising and lowers prices as the population begins to return to personal gyms. This could “change the economic model”. Also Peloton reduced its guidelines for the financial year 2022 for new subscribers and sales at the time of the last earnings announcement.

Investors will want to tag their calendars as Peloton shares its next quarterly update.

At the time of publication, Eddie Pan did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are the opinions of the writer who are the subject InvestorPlace.com Guidelines for publication.