Peloton may have bigger problems than the public relations fallout from the controversial ad that became a meme. Short-seller Citron Research says it expects the stock to plunge nearly 85% to just $5 a share.
Citron said in the report, titled"Investors Peddling Themselves into Frenzy," that Peloton is reminiscent of GoPro and Fitbit . Those two companies were once market leaders in their respective categories of wearable action cameras and fitness trackers. But an onslaught of competition hurt their sales and profits and proved that they were just one-trick ponies.
Ryan Reynolds mocks Peloton with new ad 01:55"Competition is so intense that some competitors are even offering to give the exercise bike for free with a digital subscription. Citron believes Peloton's glory days of hardware sales are in the rear-view mirror," Citron said.Peloton was not immediately available for comment about the Citron report. But management has defended its latest ad, saying that it was not sexist as many have claimed.
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