Weight Watchers International, Inc. (NYSE: WTW)
Late last year, it was announced that Oprah Winfrey had made a large investment in Weight Watchers under an agreement that would make her an integral part of their strategy. Recently, we’ve seen the fruits of this agreement as Oprah launched a video, pushing the value of the stock up exponentially. Today, we’ll talk about the video, what we saw in the market as a result, and what we can expect to see from WTW moving forward. So, let’s get right to it!
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Oprah Posts WTW Video On Twitter
Recently, Oprah Winfrey took to Twitter to let her followers know how she’s doing on the Weight Watchers system. The post, titled “Eat bread, lose weight, Whaaatttt?” was an invitation for her followers to lose weight wither her using WTW. In the video, Oprah makes it very clear that she loves bread… no, she really loves bread! More importantly, she makes it clear that she still eats bread. However, thanks to the Weight Watchers system, Oprah has lost 26 pounds, even though she still enjoys bread. This is a big thing in the weight loss community and is likely to lead to a high sales volume for WTW. Here’s the post:
— Oprah Winfrey (@Oprah) January 26, 2016
How The Market Reacted To The News
As investors, it is common knowledge for us that when a publicly traded company is featured in positive news, we can expect to see gains in the company’s stock. It’s clear that Oprah’s Tweet is positive news. After all, Winfrey is an icon for women all around the world. As a result of the tweet, we can expect to see higher sales volume and strong revenue; so, investors pushed the stock up. In fact, the stock skyrocketed yesterday and the gains seem to be continuing today. Currently (10:56), WTW is trading at $13.82 per share after a gain of 2.75% so far today.
What We Can Expect To See From WTW Moving Forward
Moving forward, I have an overwhelmingly positive opinion of what we can expect to see from WTW. The reality is that the company’s move to partner with Oprah is a key driver, and will likely lead to further gains. If you don’t know Oprah, you’ve likely been living under a rock. As mentioned above, Winfrey is a icon to millions of women worldwide. When she says it, her followers believe that it is carved into stone and the best thing to do! So, when Oprah invites her followers to join her on the Weight Watchers system, what happens? They follow her. As a result of Oprah being involved, WTW is likely to become the most popular weight loss system around the world. Of course, this will lead to strong sales volume, strong revenue, and incredible gains for the stock.
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What Do You Think?
Where do you think WTW is headed moving forward and why? Let us know your opinion in the comments below!