Peloton Lost $942M of Its Market Value in One Day After Controversial Ad
Social media backlash caused Peloton stock to drop more than nine percent.
It turns out the fallout from Peloton’s holiday ad extended beyond simply getting dunked on on Twitter: as Business Insider reports, the company’s stock fell more than nine percent on Tuesday (Dec. 3) following the backlash, causing it to lose $942 million of its market value in a single day.
The drop — which was the biggest single-day dip for the company since October — brings Peloton’s market cap to roughly $9.4 billion.
Many people called out the company’s “The Gift That Gives Back” ad out on social media for being sexist. It features an already-fit woman who receives a Peloton bike from her husband for Christmas filming herself working out for a year before the couple watches her videos, reflecting on her fitness journey.
“Take me down to the Peloton city where the wives are lean and the men are shitty,” one Twitter user wrote, while another noticed how wealthy the couple appeared to be in the ad and wrote, “Peloton is legally required to repossess your bike if at least one wall of your house isn’t entirely windows.”
— Josh Jordan (@NumbersMuncher) December 3, 2019
Peloton is legally required to repossess your bike if at least one wall of your house isn’t entirely windows
— the drake gatsby 🎄 (@DrakeGatsby) December 4, 2019
🎶 Take me down to the Peloton city where the wives are lean and the men are shitty 🎶
— The Volatile Mermaid (@OhNoSheTwitnt) December 3, 2019
Peloton, however, is standing by the ad. “We constantly hear from our members how their lives have been meaningfully and positively impacted after purchasing or being gifted a Peloton Bike or Tread, often in ways that surprise them,” a Peloton spokesperson said. You can watch the ad and judge for yourself below.
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