PTON: Turbulence for traders, Opportunity for Investors

Peloton shares tanked yesterday after the company recalled all Tread and Tread+ Treadmills, a decision based on reports of 70+ injuries and one death. So...how did this impact sentiment? Take a look.

Yesterday was the largest spike in Peloton Negative Sentiment that we've recorded. Sentiment plunged 30 points in a day to 47.5% positive. However, Sentiment had recovered prior to this recall. Even post-CPSC warning, Consumer Sentiment Mentions were averaging higher than 80% positive.  We'll be watching Sentiment closely to understand any long-term impacts.  On the flip side, we know consumer demand for Peloton products remains extremely high. While the rate of growth tempered in the last quarter, 21Q3 was the largest demand bar we've ever recorded.

Now investors must ask themselves, does this sell-off present a long-term opportunity? Peloton App Usage shows retention. We'll be listening to the Earnings call for indications of continued growth.