Weight Watchers International (WTW) Soars after Oprah Launches Video Ad

Weight Watchers

The stock price of Weight Watchers International, Inc. (NYSE: WTW) increased almost 19% to $23.01 per share today. The main driver was the recently launched video campaign of Oprah Winfrey regarding weight management.

In fact, the weight management services company gained 27% in stock value over the past two days since the release of the video featuring Oprah endorsing its weight-loss program.

Market observers suggested that the video campaign renewed the optimism of investors that Oprah can help turn around the company towards growth and profitability.

Oprah Weight Watchers video campaign

Oprah’s Weight Watchers video campaign inspired many to join the company’s weight management program. In the video, the actress and media mogul said,

“Inside every overweight woman is a woman she knows she can be. Many times you look in the mirror and you don’t even recognize your own self because you got lost, buried in the weight that you carry. Nothing you’ve ever been through is wasted. So every time I tried and failed, every time I tried again, and every time I tried again, has brought me to this most powerful moment to say, ‘If not now, when?  She added, “Are you ready? Let’s do this together.”

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Oprah invested in Weight Watchers

On October 19, Weight Watchers announced that Oprah acquired a 10% stake in the company and joined its Board of Directors. The actress and media mogul also signed a five-year agreement that gives the company the right to use her name and image in advertisement, programs, products, and services subject to her approval.

In late October, Oprah disclosed that his stake in the company was nearly 15% including options. Weight Watchers gained more than 260% over the past three months. During the day, her investment was announced, the stock price of the company skyrocketed 100%.

Over the past 52 weeks, the shares of Weight Watchers traded between $3.67 per share and $28.05 per share. The shares are still down more than 13% based on its current trading price.

Weight Watchers stock chart

Last month, Weight Watchers posted earnings of $0.38 per share on $273.3 million in revenue for the third quarter. The company raised its earnings guidance for the full fiscal 2015 in the range of $0.64 to $0.74 per share from its previous guidance of around $0.57 to $0.72 per share.