Peloton ad costs the company and shareholders $1.6 billion

A winning advertisement can create a veritable halo around a brand. Then there’s what happened to Peloton.

The high-end exercise equipment maker has lost about $1.6 billion in market value following a controversial TV ad that some have bashed as sexist, classist and promoting an unhealthy body image. Although the spot originally ran in early November, Peloton shares have lost 15% since Monday, when the ad made the rounds on social media.

Source: https://www.ozarksfirst.com/entertainment-news/peloton-ad-costs-the-company-and-shareholders-1-6-billion/

I mean is this for real that a companys stock can go so low due to a bad commercial

Oooh, someone's in trouble this morning...

This is kinda scary.

First, social media is lynching companies and people if they disagree with some idea. Now you get a 1.6 billion dollar fine for a TV ad that doesn't conform? I don't like where this is going.

Quote from the article:
Another factor that could be scuffing up Peloton is the expiration, possibly as early as next month, of the “lockup period” on the stock following its September initial public offering – that’s when insiders are free to sell their shares.

“When you have a lock-up period, the last thing you want is any speed bump to further inflame that sell-off – it’s a bad ingredient,” said Wedbush Securities analyst Dan Ives.

Negative publicity exists but each and every company can counter it hence I don’t believe an ad cause it, the article maker used a clever clickbait article that’s all.

Another classic was factory records released a 12" version of blue monday by new order.

It had a beautiful sleeve, but they lost money on each one sold.

They figured they would only sell a few and so viewed it as a pr exercise.

Blue monday went on to become the biggest selling 12" single ever and so contributed to the bankruptcy of factory records.

It surely got them more eyeballs

we know any publicity be it good or bad is still going to grab the attention