Peloton wants people to know that its at-home workout equipment can help them improve their physical health rather than cause health problems, as portrayed in HBO Max’s revival of “Sex and the City.”
On Sunday, the corporation responded on Twitter to a storyline in “Sex and the City” that sent the company’s stock plummeting last week, adding to a recent selloff. The stock is down over 75% year to date, and on Friday it hit a 52-week low of $37.67.
(Warning! This next part contains spoilers for the first episode of “And Just Like That…”)
Mr. Big, one of the main characters in “And Just Like That…”, died of a heart attack after taking a 45-minute Peloton session in the widely discussed “Sex and the City” scene.
After Mr. Big, played by “Sex and the City” star Chris Noth, gets up from a fall in Peloton’s spoof ad, Jess King, the Peloton teacher who was portrayed in the HBO show, sits down with him and asks if he would like to take another session on the Bike.
In Peloton’s video, Noth states, “I feel great. Shall we take another ride? It’s too short of a life not to.”
” And just like that, the world was reminded that regular cycling stimulates and improves your heart, lungs and circulation. … Cycling strengthens your heart muscles, lowers resting pulse and reduces blood fat levels. He’s alive,” says a voiceover by actor and director Ryan Reynolds.
According to a Peloton spokesman, the entire thing was put together in just 48 hours and filmed in New York City. The commercial was made by Reynolds’ marketing firm, Maximum Effort.
Peloton has lowered its full-year projection and frozen hiring in recent weeks, citing decreased demand for its goods as the reason for the “Sex and the City” scene. Peloton is up against stiff competition from not only rival at-home fitness firms, but also gym chains wooing returning customers.
People were stuck at home and seeking for methods to preserve healthy habits, thus Peloton was a significant pandemic benefactor. Its shares also benefited, jumping almost 440 percent in 2020.
Investors are now concerned that future growth will be much more difficult to come by and will come at a higher cost.
In recent months, Peloton has experienced a slew of problems, including regulatory investigation. After reports of one death and dozens of injuries, the business launched a voluntary treadmill recall in May. It also slashed the price of the original Bike by hundreds of dollars in the hopes of attracting a wider audience.
While Peloton stated it worked with HBO on the placement of one of its Bikes in “And Just Like That…”, the network didn’t reveal the narrative ahead of time for “confidentiality concerns,” according to Peloton.
A spokesman for HBO did not immediately reply to a request for comment from CNBC.
BMO Capital Markets analyst Simeon Siegel, who wrote a note to clients last week warning that the portrayal in “Sex and the City” could indicate brand issues, said that enlisting Reynolds’ help with a reaction video was a wise decision. (Reynolds previously cast the woman from the infamous “Peloton Wife” advertisement in an ad for his Aviation Gin brand.)
“One, who doesn’t love Reynolds,” Siegel said. ” Better to have Ryan on Team Peloton rather than against.”
However, Siegel expressed his skepticism about how much the firm spent to put the show together so rapidly.
“Either way, it is worth understanding how much a Reynolds-Chris Noth commercial costs,” he remarked.
Since Nov. 4, when Peloton reported that demand for its exercise cycles and treadmills was slowing faster than predicted as individuals resumed their pre-pandemic habits, the company’s stock has lost more than half of its value.
“Sex and the City” and “And Just Like That,” like Peloton, are based in New York.
