Time To Remedy The Ultimate Example Of DEI?

Remembering The Ultimate Example Of DEI

In a post two months ago ("The Ultimate Example Of DEI") I pointed out what appeared to be an extraordinary example of Diversity, Equity, and Inclusion at Peloton Interactive (PTON). 

How Much More Qualified Can You Get? 

Peloton (PTON) is best known for its stationary exercise bikes, but it also has rowing machines. And--you would think--the best-qualified person to teach its rowing classes, Nick Mead, who just won an Olympic gold medal in rowing. But Peloton has Mead working logistics for them instead. 

that’s our Clark Kent 🥹@usrowing pic.twitter.com/cxqBxyhxIy

— Peloton (@onepeloton) August 1, 2024

Bear in mind, being a Peloton instructor can be a pretty good gig. As ChatGPT notes, 

On average, Peloton instructors are reported to make between $100,000 and $500,000 per year. Some of the most popular instructors, who have built large followings and have become key figures in the Peloton community, may earn even more, potentially reaching up to $1 million per year when including bonuses, endorsements, and other income streams.

For example, some Pelton instructors have published books, that wouldn't have sold without their Peloton followings. Others have endorsed sports drinks, appeared in commercials for them, etc. 

Who Peloton Has Teaching Its Rowing Classes

So who did Peloton hire as a rowing instructor over Nick Mead, the Olympic gold medalist? One rowing instructor they hired was Ash Pryor, who helpfully informs readers on her Peloton bio that she is a black woman. 

This seems like the ultimate example of Diversity, Equity, and Inclusion (DEI): a white male Olympic gold medalist taking a back seat to an overweight black woman. 

Moving Away From DEI?

Peloton's employment of Ash Pryor as a rowing instructor was consistent with some of their recent advertising, which eschewed straight white males. That seems to be changing. This month, they announced a new ad campaign with retired NFL defensive end JJ Watt and his brother, current NFL defensive end TJ Watt. 

The genesis of this campaign was JJ Watt's surprise at the difficulty of a Peloton class he took a year before. 

Peloton Shares Spike On Earnings Beat, New CEO

On Thursday, shares of Peloton spiked nearly 28% after the company reported an earnings beat and the hiring of a new CEO, Peter Stern. Bloomberg leads with Stern's Ford experience, but more relevantly, Stern was the co-founder of Apple Fitness+. 

And, like JJ Watt, Stern was a Peloton user before he started working for them. Reportedly, he's had a Peloton membership since 2016. If you're thinking of joining too, there are some discounts available here. 

The Surprise Twist 

Regular readers may remember my interview with the CEO of bitcoin miner Bit Digital, Inc. (BTBT) published at the beginning of October ("Bitcoin, Ethereum, And AI").

In that post, I mentioned that BTBT was the underlying stock in one of the two "lottery ticket" options trades I wrote about in this trade alert in September. 

The other stock was Peloton. Our trade there was buying the $5 strike calls on it expiring next April. On Thursday, I sold half of my calls for a 250% gain. 

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