Peloton's Earnings Call Next Month...The Count Down Begins
Peloton Interactive, Inc. provides interactive fitness products in North America. It offers connected fitness products, such as the Peloton Bike and the Peloton Tread, which include touchscreen that streams live and on-demand classes.
In and around Christmas, Peloton's 30-second ad depictig an upper middle class woman (appearing physically fit) who receives a Peloton exercise bike as a Christmas gift from her husband, journalizes her use of the machine and thanks her husband for the thoughtful gift at the end of the ad sent social media in an uproar.
To make matters worst, Andrew Left of Citron Research, said Peloton stock price was heading to $5 by the end of 2020... unless Peloton invents a piece of equipment that works out for you.
But things have died down a bit for now, especially after the actress in the Peloton ad was identified. The lady in the ad is Monica Ruiz. Monica Ruiz declined interview requests after the ad went viral so she wouldn’t appear to be capitalizing on the negative press or making fun of the company.
The mother of two, Monica has appeared in several commercials in the past, including Lee Jeans and Herbal Essences and TV shows like “About a Boy” and “The Exes” just wants to move on. She closed the Peloton chapter by appearing in an Aviation Gin when Monica is sitting in a bar, staring blankly into the camera, barely blinking, while her two female friends look on with concern.
But the press has been good for Monica. She was recently offered and accepted a guest spot on a The Bold & the Beautiful episode that will air on TV in January and if the episode does well, she will be bought back.
In regards to Peloton, well Andrew Left talks about Peloton's first to market advantage, there is nothing unique about the bike and the competition are making similar, but more affordable bikes:
Flywheel Home Bike with Built-In Tablet
This Flywheel cycling machine allows riders to follow real-time workouts by Flywheel instructors and the bike is compatible with Bluetooth heart monitors you can plug right into it
NordicTrack Commercial Studio Cycle
The NordicTrack stationary bike includes a one-year membership to its iFit service, an interactive personal training program. Its 14-inch HD touchscreen allow for 360-degree rotation and streams iFit content directly.
Echelon Smart Connect Bike EX5S
The latest EX5S Bike model comes with a 21.5-inch HD touchscreen that flips 180 degrees for live streaming workouts.
Shares of the New York-based company fell as much as 5.1% Wednesday and are on pace to erase what topped out as a $2.20 gain so far in 2020. The stock is now up less than 2% from a September IPO, compared to a the S&P 500’s more than 9% gain to fresh record highs.
Short bets against the company have remained steady over the last six weeks, with more than 70% of shares available for trading currently sold short, data compiled by financial analytics firm S3 Partners show.
Things are going to get interesting real soon as the earnings announcement next month, in my opinion is going to dictate the direction of the stock the reminder of the year.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Should I make a short play on peloton for the earnings call? I think I might lol
I own a peloton bike. They are pricey indeed. Very high quality piece of equipment but the price is definitely a shut-off to many. Especially the ongoing costs of membership and all that.
I wouldn't recommend doing a short play, unless I saw unusual options activity, but you many want to consider a LEAP put or put diagonal spread which would give you more time for the option to work out.
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