Weight Watchers shares soar on Oprah power
Shares of Weight Watchers International (WTW) soared 26.6% during the last trading week, driven by the power of Oprah.
The increase in value came as billionaire media star Oprah Winfrey, a major Weight Watchers investor and board member, tweeted an invitation asking her legions of Twitter followers to "come join me," just as many Americans made traditional new year resolutions to start dieting.
"Are you ready?" asked Winfrey, premiering a new campaign touting the company's efforts to help members shed unwanted pounds. "Let's do this together."
Weight Watchers shares closed down 1.08% at $22.80 at the holiday-abbreviated end of the trading week Thursday, up from the $18.00 close on Christmas Eve. But the decline nibbled away little of the four-day overall gain.
The week's rise offered new evidence of Winfrey's international influence as she tries to lift the struggling 53-year-old New York City company by mixing star power with an emotional endorsement of reaching health goals.
In October, she spent $43.2 million to take a 10% stake in Weight Watchers and join the company's board of directors. Winfrey later boosted the stake to nearly 15%, including options.
Investors sent the company's shares up 105% overnight after her investment was disclosed, providing a $70 million one-day paper gain for Winfrey.
Coinciding with her investment, Weight Watchers announced it would expand its traditional focus on dieting and weight loss to include a broader emphasis on healthy living. The change seemed clear in the new video clip.
Oprah buys 10% of Weight Watchers, stock soars
"Inside every overweight woman is a woman she knows she can be," said Winfrey, who famously has shared her personal battle of the bulge with fans. "If not now, when?"
Followers who navigated to Weight Watchers' website this week were greeted by a smiling image of the 61-year-old star, above an offer to "Join Free and Lose 10 Lbs on Us with purchase of select subscription plans."
The company's stock went through ups and downs in the months after Winfrey's investment, and reached a $26.61 a share peak on Nov. 18. Overall, Weight Watchers ended down 8.21% for the year.
Nonetheless, Winfrey, whose talk show recommendations have turned books new and old into instant best-sellers, has similarly emerged as at least a temporary financial savior for the company. Weight Watchers shares are now up 235.8% since she bought in, a sweet treat for her and other shareholders.
Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc.
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