WW International (WW) continues to sizzle after board member Oprah Winfrey clarified that she didn’t mean to diss weight-loss drugs. Formerly WeightWatchers, WW stock broke out Tuesday.
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Over the weekend, Oprah Winfrey told The Wall Street Journal that she believes prescription weight-loss drugs are “an important and viable option” for people struggling with their weight and health.
Her earlier comments describing medications like Ozempic as an “easy way out” had been “misconstrued and taken out of context,” the billionaire media maven said. Following those prior remarks, WW stock tumbled Sept. 21 as some investors took them to mean WeightWatchers was shunning the treatment.
Oprah Boost For WW Stock?
On Monday, D.A. Davidson analyst Linda Bolton Weiser said she believes Oprah’s statement to the Journal “will be viewed very positively for WW” stock. Weiser kept a buy rating on shares.
In Q2, WeightWatchers acquired Sequence, a subscription service that prescribes new weight-loss drugs like Ozempic via telehealth appointments.
The embrace of new drug treatment options marks a big shift for the company. It now sees a place for the medicines alongside the traditional weight-loss programs that are its core offerings, such as coaching sessions for diet and exercise.
WeightWatchers Stock Breaks Out To Highs
Shares jumped 11.9% to 13.21 on the stock market today. That move sent WeightWatchers stock to a new 52-week high, the MarketSmith chart shows.
The stock also soared 13% Monday following the Journal report, and after rebounding from the 50-day moving average last Friday.
The emerging class of weight loss drugs from names like Novo Nordisk (NVO) and Eli Lilly (LLY) offer a new line of attack against obesity. Novo Nordisk’s Wegovy is also sold as the diabetes drug Ozempic.
Winfrey is one of WeightWatchers’ biggest shareholders, with a roughly 10% stake.
Morgan Stanley analysts expect the market for obesity drugs to reach $54 billion by 2030. That would be up from $2.4 billion in 2022.
Year to date, WeightWatchers stock has more than tripled, though its gains have come off a low base. It has gained 242% in 2023 so far but remains far below all-time highs.
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