On March 16, Eastern Time, the U.S. stock market experienced its third circuit breaker in eight days. As of the close, the Dow Jones Industrial Average closed down about 3,000 points, or nearly 13%, hitting a three-year low.

On March 16, Eastern Time, U.S. stocks experienced the third circuit breaker in eight days. As of the close, the Dow Jones Industrial Average closed down about 3,000 points, or nearly 13%, hitting a three-year low. Among the S&P 500 stocks, only nine stocks closed higher.

However, the share price of home fitness brand Peloton bucked the trend and increased by 12.83% to close at US$22.25, becoming one of the few "survivors".

In contrast, another large gym chain, Planet Fitness (planet fitness), plunged 28.12% last night to close at $38.8.

However, it should be noted that Peloton has been declining since its highest price of 37.02 yuan in December last year, and it just hit the bottom before bucking the trend and rebounding last night. But Planet Fitness also better reflects the current situation. Its stock price has been rising since its listing in 2015, from a low of less than US$10 per share to a high of US$88.77 in mid-February this year. However, it has plummeted since February 19. Already cut in half.

What happened in China nearly 2 months ago is now happening in the United States. Among them, gyms have closed one after another, which has also led to an increase in enthusiasm for indoor fitness. The price of Switch fitness rings has skyrocketed in China, but Peloton, which has always focused on home smart fitness, has not been able to reflect this in its recent stock price.

One of the reasons for the rebound in its stock price is that the epidemic has had an increasing impact on the United States.

In recent days, several U.S. states and cities have said they will close non-essential businesses, including movie theaters and nightclubs, to encourage social distancing and help prevent the spread of the new coronavirus.

On March 16, the Trump administration has announced new guidelines to encourage the public not to travel at will and to avoid gatherings of more than 10 people. In addition to recommending avoiding bars, restaurants and food courts, the guidance also encourages distance learning from home. Trump also said that the new crown epidemic may last until July or August.

Another driving force may be that on March 16, Peloton announced that it would increase the free trial period for new App users from 30 days to 90 days.

Peloton was founded in 2012 and is headquartered in New York. It is currently the world's largest interactive fitness platform company, with more than 1.4 million members. Peloton's main business is divided into three parts, exercise bike , treadmill sales and fitness subscription services.

In 2014, Peloton launched its first exercise bike product, Peloton Bike, and in 2018, it launched the treadmill Peloton Tread, with official website prices of US$2,245 and US$4,295 respectively. Through the display on the Peloton hardware device, users can access thousands of on-demand videos and online classes led by coaches remotely. Regular users need to pay a monthly course subscription fee of $39. In order to cater to users who don’t want to buy expensive fitness equipment, Peloton launched an online membership of US$19.49/month in 2018, which has now been reduced to US$12/month.

However, the capital market’s attitude towards Peloton fluctuates greatly.

Peloton was listed on Nasdaq on September 26, US time, with a market value of more than US$8 billion and an issue price of US$29. However, among IPOs that raised at least $500 million this year, Peloton had the second-largest share price decline on its first day of listing in 2019, according to Dealogic data.

In November 2019, the technology fitness company Peloton released its first quarter earnings report for fiscal year 2020. This was also the first time the company released an earnings report since it went public. The financial report shows that Peloton’s first-quarter revenue exceeded expectations, with hardware revenue growing by 103% and online content subscription revenue growing by 112%. However, the loss was still as high as US$49.8 million. After the release of

's financial report, Peloton's stock price ushered in a small climax of growth for nearly a month. But in early December, a Christmas ad released by Peloton was accused of "sexism" on social media, which affected Peloton's stock price. The stock closed down more than 9% on Tuesday.

In December 2019, Peloton was "short-sold" by Citron, a short-selling organization. Citron believes that Peloton's current market value of US$8.2 billion is seriously overvalued, and its stock price will fall to US$5 in 2020. Since the stock was trading at $31 at the time, Citron's price target was 84% ​​below current prices. The replicability of

Peloton model is also destined to withstand the pressure of peer competition.

Peloton sued another cycling fitness company, Flywheel, in September 2018, claiming that Flywheel copied the concept of its high-tech exercise bikes and home live classes.In February this year, Peloton and Flywheel reached a settlement over patent infringement, and Flywheel will stop providing virtual classes in late March. Peloton is also now offering existing Flywheel customers the option to trade in their At Flywheel bikes for refurbished Peloton-branded bikes.

has been rising again and again. On March 9, SoulCycle, the largest dynamic bicycle brand in the United States, launched a new home fitness bicycle. This bicycle is very similar in design to Peloton's products, except for the pedals and There is a slight difference in the maximum weight capacity. SoulCycle’s official website shows that the bicycle is priced at US$2,500, which also includes the cost of 5 fitness classes.

However, due to the impact of the epidemic, users who are accustomed to using SoulCycle in the gym may turn into a new user growth point for Peloton. The three-month access to the App will most likely further attract users, which will lead to an increase in hardware purchases - although recently, feedback from American users shows that the epidemic has exacerbated the poor logistics problem that has been criticized, making Peloton hardware sales have been affected.

As of noon on March 17, Beijing time, Peloton rose 3.19% before the US stock market opened, expressing the current attitude of the capital market towards it. In the short term, Peloton has finally benefited from the United States' real attention to the epidemic.

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