New Year's Resolutions
Bradley Goldhar - Jan 16, 2023
After being inundated by an onslaught of advertising for betting sites, it now feels as if all of the fitness and diet-related companies are dominating the airwaves.
After being inundated by an onslaught of advertising for betting sites, it now feels as if all of the fitness and diet-related companies are dominating the airwaves. This seems to be the case every January as the companies try to capitalize on the most common New Year’s resolutions – get fit and lose weight. Peloton*, which was a stock market darling at the outset of the Pandemic, has been promoting themselves by claiming that 92% of users still use their service a year later. That’s an impressive client retention rate and I can attest that we have a Peloton bike at home and still use it after 3 years (my handle is Bookrunner2). The Peloton share price took a beating in 2022 as did the shares of Weight Watchers, now known as WW International. Maybe this year their values will rebound and so far, so good for both companies.
| Company (Symbol) | Price Return in 2022 | Price Return in 2023 |
| Peloton (PTON) | -77.8% | +39.8% |
| WW International (WW) | -76.1% | +13.2% |
Sources: ThomsonOne, Values as of January 12
This week’s "Focus" from our economics team is attached.
Have a great weekend and please stay safe,
Brad