By Kuldip K. Ambastha and Anil K. Ambastha
HAPPY HOLIDAYS, EVERYBODY!
During this week of Christmas, Peloton Interactive, Inc. (PTON) and WW International, Inc. (formerly Weight Watchers International, Inc.) (WW) caught our eye. On Thursday, December 26, 2019 (the day after Christmas 2019), Peloton dropped by 6.1%, while WW International fell by 8.5%. Peloton is a luxury exercise gear maker, while WW International offers products and services which help with weight loss, weight maintenance, fitness, plus other health & wellness matters. There was no particular news specifically on December 26 which led to the negative daily returns seen for the two companies on this day. However, news from prior days has continued to affect the stocks. Specifically, in early December, Peloton released a TV commercial which can be interpreted as controversial and sexist. The TV commercial shows a husband giving his wife a Peloton bicycle as a Christmas present. Many articles, both for and against the commercial, have been released online by writers after the commercial was released. Separately, WW International has struggled to show success in its 2019 re-branding campaign and failed to attract many new customers in the winter season. Oprah Winfrey is a prominent shareholder in WW International, and owns 8% of the company. This is the second-largest stake held in the stock of the company. Ms. Winfrey and many other celebrities will soon be traveling to different cities on an arena tour to promote WW International. It remains to be seen if WW International can re-brand successfully from a weight loss-focused company into one that instead serves customers via technology-based experiences with a human touch added on.
Keywords – Peloton Interactive, Inc., Peloton Interactive, Peloton, PTON, WW International, Inc., WW International, Weight Watchers International, Inc., Weight Watchers International, Weight Watchers, WW, luxury, exercise, gear, weight loss, weight maintenance, fitness, health & wellness, products, services, Christmas, holidays, winter holidays, holiday season, Oprah Winfrey, Oprah, O.
Disclosure – The principals and clients of Ambastha Financial LLC do not have any positions in PTON and WW.
Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2019 – Ambastha Financial LLC.