"Peloton's! Peloton's!" It is funny to hear the sweaty announcer on the Peloton stationary bicycle television commercial yell this proclamation. It sounds like 'pelicans' which are shlumpy birds that eat garbage. The new PTON IPO, that has not even traded long enough to have a 20-week moving average as yet, crashes -9.1% today, although from record highs. Peloton's holiday television commercial has created controversy.
In the tv ad, a wife or live-in honey receives a Peloton stationary bicycle for Christmas from her husband, or boyfriend. As all men know, any male with half a brain, you do not give your honey exercise equipment for a gift. If you are that stupid, you will be sleeping with Fido in the garage for a few weeks. Some folks think the commercial is sexist. Why wasn't the man given a Peloton? Why does the woman always have to lose weight and get in shape? Viewers also criticize the Peloton ad for showing a skinny runway-style model receiving the bike. She does not need any exercise; she needs a meal. The commercial receives a bad rap on social internet so the stock is taken to the shed out back and beaten with a bicycle chain; PTON plummets -9%.
It is surprising to see PTON price take off like a rocket up that green channel which is trying to close in and become a rising wedge. From 21 to 37 is a +76% rally in only six weeks. Wow. The Wall Street criminals made a lot of easy money on this one.
Peloton receives a lot of publicity over the ad and the company believes that the controversy will not hurt its holiday sales. Company executives say plenty of Peloton's will be under the Christmas tree in three weeks and the ad will not matter. One investment house downgraded PTON but another provided an upgrade.
What excitement over a $5,000 clothes hanger. Consumers, with good intentions and high goals, purchase stationary bikes, treadmills, elliptical's and other contraptions that all end up as clothes hangers. The ony people that can buy this huge equipment is folks with big homes. The hot-shot young crowd must think Peloton is the best thing since sliced bread but you can pay less than five hundo for a stationary bicycle or treadmill up at WMT and hang your clothes on them just as easy.
The real funny part is that people pay $60? a month to use the Pelotin. Your wallet sure does lose the weight. It is reminiscent of the silly dotcom bubble days with Webvan and Pets.com. We are in the silly stage of the stock market top.
What most of you young people do not understand is that a recession is on our doorstep and all your lives are about to seriously change for the next couple years. Prepare yourself. Once a spouse loses their job in the months ahead, you are not going to be throwing $60 bucks away on Peloton per month. Keystone can hear the young folks saying "Okay, boomer", but older folks will scratch their bald heads and wonder what is the need for all that exercise equipment fanciness. Go out and run around the block for free. Get some fresh air instead of sucking in formaldehyde fumes and chemical vapors from cabinets and carpets in your sealed workout room, with your Peloton.
On the PTON daily chart, price peaks on Monday at 37 and tanks today to 33 the bottom of that green trend line. The red lines show overbot RSI, stochastics and money flow which conspire to create the spankdown today. However, the RSI, MACD and money flow all made higher highs with their indicators as price made the higher high. That says price should come back up for another higher high. The wildcard is this television commercial trouble and how much damage it may create.
Peloton is to have rumored to pull the ad but it is still running this evening. They may let the ad play since that is their target demographic; young, hip, skinny, healthy, athletic folks with money. They are probably frantically filming a new ad around the clock now, to release it as fast as possible, where the husband receives the Peloton instead of the pretty and skinny babe. Instead of a Peloton, both men and women need to do pushups to lose weight. They need to push themselves up and away from the kitchen table; this is the best way to lose weight.
Considering the Peloton business model, a stationary bike business, perhaps Keystone does not understand all the intricacies to be fair, there are probably many traders willing to short the stock, but that may lead to disappointment as seen with the goofy behavior in TSLA stock. Peloton is similar to Soul Cycle only you stay at home and do not have to smell everyone's sweaty stink at the gym.
As odd as it is, the PTON daily chart wants to print another higher higher in price and it would not be considered a short until the chart indicators negatively diverge against the higher high in price. If you are adventurous, it may set up as a short next week. Keystone will likely not play it long or short since it is a goofball company with a goofball service. "Go Peloton's!" Hahaha. That's funny. Keystone hangs his clothes in the closet so he does not need a stationary bicycle or treadmill. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added Wednesday, 12/4/19, at 2:11 PM EST: Peloton is fighting back at all the naysayers about its ad proclaiming that 'they are disappointed in how some have misinterpreted the spot' according to a CNBC article. They are dumb; the number one rule of retail is that you do not insult your current or prospective customers. Interestingly, PTON had already recovered and was up over +5% in this morning's trade but the doubling-down by Peloton defending the skinny girl ad, reversed the stock and it is now down -5.6% on the session adding to yesterday's drubbing. Poor PTON is getting beaten with its own bicycle chain.
Note Added Wednesday, 12/4/19, at 4:06 PM EST: PTON finishes down -1.6% at 32.95. LOD 31.22. Go Peloton's! Go pelican's!
Note Added Saturday Morning, 12/7/19, at 9:26 AM EST: The Peloton drama continues. The actress in the ad at the center of the controversy is Monica Ruiz now dubbed "Peloton Wife" and "Peloton Girl." That is hilarious. PTON stock crashed -7.4% this week to 32.63; the stock had collapsed as much as -15% before recovering late in the week. PTON was up on Monday and then collapsed due to social media's criticism of the ad, printing three black crow candlesticks Tuesday to Thursday, and then a rebound on Friday. Peloton says the ad will not impact holiday sales. At least that is what they are hoping. Go Peloton's!
Note Added Wednesday Morning, 12/11/19, at 6:53 AM EST: The Peloton drama continues. Social media continues to talk about the television commercial with the skinny needy chick. Management says all is good but investors are becoming more agitated and nervous about the stock price. PTON dumps -6% in the Tuesday trade to 32.78, overall still hanging in there. The 30.7-32.2 support zone is very strong and should hold through the end of year, however, if it does not, look out below. Maybe customers are rethinking the idea of spending thousands on a clothes hanger for the bedroom when the closet works fine. PTON is praying for a Santa miracle to prop it up into the new year. Peloton Wife needs to start peddlin' faster.
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