It has cost Peloton more than $1 billion, with the market capitalization dropping from $10.3 billion on Monday to $9.2 billion on Wednesday.
dropping from $10.3 billion on Monday to $9.2 billion on Wednesday. Daniel McCarthy, an assistant professor of marketing at Emory University’s Goizueta Business School, attributes the stock price dip directly to the ad.
McCarthy said he wouldn’t be surprised if the ad is taken down but that there may be an unexpected outcome. “History would suggest that this sort of snafu will be short-lived and people will forget about it in two weeks,” he said, “If people forget about the ad … but remember Peloton it might end up being more beneficial than it seems.”
Peloton is standing by the ad. “While we're disappointed in how some have misinterpreted this commercial, we are encouraged by—and grateful for—the outpouring of support we've received from those who understand what we were trying to communicate,” a Peloton spokesperson toldStephanie Jacobson, a Peloton customer who owns the bike and pays the monthly subscription said that Peloton’s marketing has been “tone-deaf consistently” and that the ads cater to “an upper-class consumer.
In an investor note Tuesday, Raymond James analysts wrote that the “significant backlash” of the ad wouldn’t have a long-term effect but that it might cause a shift in Peloton’s marketing strategy: “While reactions to the holiday ad are disappointing, we do not expect it will adversely affect holiday demand.” This isn’t the first time that Peloton ads have received significant social media attention.
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