Platoon reached with a drop in grades

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We don’t feel good about spoilers, so it’s best not to mention how well connected fitness company Peloton features in HBO Max’s new “Sex and the City” reboot called “And Just Like That ..” . “

Suffice it to say that the plot we are not disclosing here creates a dubious PR outlook combined with bad market timing – ironically mirroring the performance of a connected fitness cycle that has helped thousands of people burn fat. “COVID-19 pounds” accumulated during the 2020 lockdowns.

CNBC reported on Friday (December 10) that “Peloton received a rating downgrade on Friday, fueling lingering concerns over weakening demand for its products. Credit Suisse analyst Kaumil Gajrawala cut by more than half the company’s price target of $ 112.00 to $ 50 by moving the stock’s rating from outperforming to neutral.

It looks like the streaming fitness company just can’t rest from the bad news brought on by a recovery that is sending workouts back to commercial gyms and out-of-home settings.

Events shifted into high gear after an Aug. 26 Peloton blog post said, “From today the original Peloton bike will be available in the US, UK, Canada, in Germany and Australia for $ 1495 USD / £ 1350 GBP / $ 1895 CAD / € 1495 EUR and $ 2295 AUD respectively (Peloton All-Access membership is separate). ”

The blog also mentioned that “Peloton’s new financing options help reduce monthly payments for qualified customers,” which many saw as price sensitivity, not promotion.

It was not seen as a financial form, which compounded the other issues that Peloton faces.

The day after the price drop, news site The Verge reported that “the recall of Tread Plus, as well as the separate recall that delayed the launch of Tread, is cited by CNBC and Peloton as part of the reason for the the company’s financial difficulties in the last quarter. “

See Also: Are Consumers Really Ditching Home Fitness?

As Peloton embarks on an uncertain future, the gym industry is back after a rough patch.

PYMNTS reported that “Planet Fitness – which fought mightily during the pandemic, as many gyms did – exceeded earnings expectations on Thursday, November 4, with executives noting membership levels reached 97% of peak of all time in the business. Membership increased for the third quarter in a row to 15 million people, ”increasing by 200,000 in one quarter.

Planet Fitness CEO Chris Rondeau said Gen Z is currently leading other demographics in gym memberships. While Gen Zers – the oldest being around 25 – may not be the target market for expensive Peloton gear and subscriptions, it does give context to the brand’s broader struggles.

See Also: Peloton’s Fall, Planet Fitness’ Rise Suggest Connected Fitness Boom Is Over

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