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Peloton Loses $942M Of Its Market Value In One Day After Backlash Over ‘Sexist’ Holiday Ad
What would be Peloton’s comment and the next action?
The Peloton has lost an estimated $942million market value within 24hrs after its holiday advertisement sparked criticism on social media pages.
Peloton, who’s an exercise equipment company was criticized over it’s commercial titled: ‘The Gift That Gives Back.’ The Holiday Ad featuring a woman receiving a stationary bike from her Christmas morning was dubbed sexist and humiliating.
Peloton lost an estimated $942million market value within 24hrs after its holiday advertisement sparked criticism
Documenting her (the woman in the video) year-long fitness experience in a series of selfie clips she compiled into a thank you video for her husband, viewers on Twitter also called the video sexist, cringeworthy and misogynistic.
The Holiday Ad featuring a woman receiving a stationary bike from her Christmas morning was dubbed sexist and humiliating
Resulting in Peloton Inc’s stock falling to about 9.12%, analysts claimed the drop was a result of the criticized holiday Ad.
The huge decline, Peloton’s biggest single-day loss since two months ago subtracted $942million from the company’s market value, bringing Peloton’s market cap to $9.4billion, Market Insider reported.
Peloton Inc’s stock fell to 9.12% and analysts claimed the drop was a result of the criticized holiday Ad
Accordingly, Justin Patterson, the Raymond James Analyst also told Bloomberg that the criticism and Peloton’s reaction are worth monitoring, adding that he expects the company to eradicate running the commercial following the ongoing backlash.
The woman (in the video) documented her year-long fitness experience in a series of selfie clips she compiled into a thank you video for her husband
On the other hand, Peloton shares rose steadily throughout November with hopes of a strong improvement during the holiday season. But now, it appears to have gone into reverse over its Ads controversy.
The commercial concluded with the couple sitting down on the couch to watch the video of her workout journey
During its Black Friday sales, the company had also gained about 10% in total and its shares had closed at $36.84 on Monday before falling to a low $33.35 on Tuesday.
Social media users say it encourages negative stereotypes
Watch The Video Here:
Source: Dailymail
