Peloton searches on Google are plunging, stock slides

Yahoo Finance Live's Brian Sozzi and Julie Hyman break down Peloton's declining searches on Google as the fitness equipment manufacturer's stock continues to fall.

Video Transcript

JULIE HYMAN: It has been a rough ride this year for Peloton. This has been one that we've been talking about quite a bit, Brian Sozzi, down 77% this year. Didn't have a big year in 2020, we should point out. But as you discovered in a recent analyst note, there's an interesting place that one can pick up a Peloton.

BRIAN SOZZI: Yeah. I'm starting to see a lot more Peloton bikes on eBay. But first, Julie, I do want to get through this interesting note from Raymond James, Aaron Kessler here who is highlighting or talking about Google Search trends in the US for Peloton. And it isn't pretty here. I have a deeper story now on the home page about this. But nonetheless, US search trends for Peloton down 30% year over year in December. They were down 31% in September.

So still under severe pressure here. Search trends in the UK down 40% year over year. That is a worsening compared to search trends in September, which were down 1%. Germany Google search trends down. Really, I would even say down just plunging 58% year over year. Those search trends were down 29% in the September quarter.

One of the lone bright spots, here is Australia, Julie, with search trends up materially of about 2 or 13% according to Kessler's data. So whether that is because of the Tread recall earlier in the year, the recent-- the headlines surrounding Mr. Big falling ill or just dying after he had a heart attack on the Sex and the City reboot, the headlines haven't been pretty for Peloton. It's starting to show up potentially and consumers having less interest in their products. And Kessler is making the argument you could see these things through Google Search data. Kessler, he doesn't have a price target on Peloton here. He does see fair value, $38 though.

JULIE HYMAN: Well, and I want to go back just one second to the bikes that are available online. What is that all about?

BRIAN SOZZI: Well, Peloton was supposed to launch a marketplace for folks to trade in their bikes. To my knowledge, that has not launched because they have a lot of other things going on at this company, whether it's marketing, whether it's trying to integrate their new acquisition of precor, a lot of things diverting management's attention. So I think what you are seeing now is a lot of Peloton bikes and overall equipment be found on eBay as people try to sell these bikes, whether that's because they want to go back to the gym or they just don't want to use these products anymore or perhaps they want the newer Peloton bike, that is unclear.

But I would say there has been a pick up in recent months on the number of these bikes being offered for sale on eBay. Now, if there's any positive here, if you're a Peloton bull, is the prices on these bikes are $100 for a new Peloton bike. They're still quite pricey just cheaper than you would get new.

JULIE HYMAN: Good news for somebody wanting to pick up a bargain bike, I suppose, or bargain on a relative basis.