I recently bought a Peloton bike and a Purple Innovations bed. And I can now see why those stocks have been red-hot.
The coronavirus pandemic has changed all of our lives, as well as our buying habits, perhaps forever. Take for example two of my family’s purchases in the last month.
Recently my wife decided she won’t be going back to the gym through the winter, so we bought a Peloton (PTON).
Also, we desperately needed a bed, and instead of going to a traditional mattress store to lie on beds to test them out in the showroom, we ordered a new bed online via Purple Innovations (PRPL).
Here are our experiences with both …
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My Peloton Purchase
Keeping my wife sane through the Covid-19 pandemic, especially as school starts again and we will be working and educating, is critical right now. And my wife is happiest when she can burn energy through working out.
Unfortunately, our gym where she used to take spin class is now closed for the foreseeable future. Because of that we started to look for a Peloton, as many of her friends raved about their experience with the interactive in-home bike.
Turns out we were not alone in looking for a Peloton as the company’s website told us that we would need to wait 10-plus weeks before one would be delivered to our home due to high demand.
Fortunately, we were able to find a brand new Peloton for sale in our neighborhood and quickly bought the (gulp) $2,400 bike. While the $2,400 was a hard pill to swallow, plus the $40-a-month subscription, big picture, my wife loves it, my kids ride it to burn energy and I’ve even taken a couple of classes. Here is a picture of me riding the Peloton (taken before the sweat really poured off my face):
Do I love the Peloton bike? It’s okay. I prefer to play two hours of tennis against a tough opponent to get my exercise, but my wife LOVES it. And as the old saying goes, “Happy Wife, Happy Life.”
And while I don’t love riding a stationary bike, what I do love is the fact that readers of my Cabot Options Trader advisory own PTON calls that we bought when Peloton stock was trading at 42. Now, two months later, the stock is trading at 70 and our calls are at a profit of over 300%!
My Purple Innovations Purchase
Moving on to our second Covid-related purchase: our new bed.
For years my wife has complained that our bed needed to be replaced, as there were lumps. I never had a problem with it as I can sleep anywhere. However, circling back to the “Happy Wife, Happy Life” motto … we decided to look into the mattress store disruptors, such as Purple Innovations (PRPL).
Purple, much like its privately held peers Leesa and Casper, are online mattress companies that offer a wide range of bed and bedding choices. Having done some research online, and talked to friends – and with the 30-day money back guarantee putting our minds at ease – we felt comfortable making the mattress purchase sight unseen.
So do we like it?
Two weeks after our purchase the bed was delivered on time to our door in a box, we easily opened it up, have slept on it for 30 days, and my wife loves it (unlike with the Peloton, I won’t be sharing any pictures of me lying in our bed).
And my wife must not be the only person who is enjoying Purple mattresses, as the stock is up 185% year-to-date, and traders have been aggressively buying upside calls looking for more gains in the stock on earnings later this month.
Will my family never return to a gym or mattress store again in our lives? I doubt that. But there is no doubt that these “stay-at-home” companies like Peloton and Purple Innovations now have their feet in the door with my family, and the American consumer in general.
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