Peloton saw $942 million in market value wiped out in a single day amid backlash around its controversial holiday ad (PTON)

Carmen Reinicke

December 4, 2019 5:23 PM

On Tuesday, Peloton tumbled 9% amid backlash around its holiday ad.

Peloton Ad

That fall erased $942 million from Peloton's market value. It was also the biggest single-day drop for the company since October.
Peloton's stock price had been gaining at a steady clip through November, making up for its disappointing September IPO.
Watch shares of Peloton trade live on Markets Insider .

Shares of Peloton , the buzzy bike startup, fell more than 9% on Tuesday as backlash around a new holiday ad built on social media.

That erased nearly $942 million from Peloton's market value in a single day, bringing the company's market cap to roughly $9.4 billion. It was also the biggest single-day drop for the company since October.

Backlash over Peloton's holiday ad, which featured a young mother working out over the course of a year after being given a Peloton bike as a gift, grew to a breaking point this week as it struck some viewers as confusing , sexist , and classist .The ad in question was first released in mid-November but aired on YouTube November 21 and is also being shown on TV.

Now, there are rumors that the ad could be taken off the air, according to The New York Times. Peloton's response, and the adverse reaction to the ad is "worth monitoring," Justin Patterson, an analyst at Raymond James, told Bloomberg . He also said he thinks the ad might be taken off the air, and that controversy will eventually die down.

Peloton did not respond to Markets Insider's request for comment.

Peloton shares gained at a steady clip in November and reached an all-time high for the newly public company on December 2, before the holiday ad controversy. The exercise company has lost ground to make up after its initial public offering wiped out $900 million of investor value on the first day of trading .

Peloton shares are up almost 16% from their September IPO through Tuesday's close .

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