Peloton’s New Ad is a Masterclass In Spinning Bad Press
And just like that, the company has flipped the script
Another day, another crisis at Peloton, one that caused stocks to plummet even further. Was it another mass recall? No. Was it the continuing realization that no one needs an at-home exercise routine as we return to “normal life” (though Omicron may have something to say about that)? No.
This week’s crisis is that a certain high-profile character in a not-as-high-profile-as-it- was TV show died from cardiac arrest after — you guessed it — riding a Peloton bike. In simpler terms, a fictional character from a fictional program died after using a non-fictional piece of machinery. And the world went bananas over it, leaving the company suffering the all-too-real consequences. The company’s stock dropped 11% in the hours after the show aired — at one point, it left stocks down 73% for the year. Not long after, Credit Suisse downgraded the stock, reducing the price target from $112 to $50. (The downgrade was due to other issues. But the sharp plunge won’t have helped). There was reputational damage, too; the brand was taken to the cleaners over social media and meme culture.
Peloton was aware that its product would be used in the show. But it appears it was blindsided by just exactly how it would be used. After the…
