PTON - Why Peloton Interactive Plug Power and Cara Therapeutics Slumped Today
Major benchmarks suffered significant losses on Tuesday, as investors had to deal with a reversal of fortune in ongoing trade negotiations between the U.S. and China. Market participants had gotten used to the idea that the two nations might be able to come up with a phased-in agreement on some common issues, but the White House suggested that the U.S. could potentially wait on a deal until after the next presidential election in November 2020. Adding to the negative sentiment was bad news from a host of individual companies. Peloton Interactive (NASDAQ: PTON), Plug Power (NASDAQ: PLUG), and Cara Therapeutics (NASDAQ: CARA) were among the worst performers. Here's why they did so poorly.
Shares of Peloton Interactive dropped 9% after its latest advertising campaign got a bad reception on social media. The interactive exercise equipment manufacturer's ad was intended to encourage holiday purchases of Peloton equipment, but many prominent figures on Twitter and elsewhere found its premise to be flawed at best. Even with the negative publicity, though, it's questionable whether most of those poking fun at Peloton would've bought its equipment anyway, and Peloton's recent financial results point to growing adoption and rising usage figures that should win out over one-day declines.
Image source: Peloton Interactive.