Weight Watchers International Inc.’s stock got another boost from the falling weight of Oprah Winfrey, the company’s backer and most famous customer.
The shares climbed as much as 19 percent after Winfrey announced that she’d lost 40 pounds using the program. The diet company, whose shares had fallen 54 percent this year before Thursday’s surge, is unveiling new TV ads featuring Winfrey that tout her weight loss. The media magnate and talk-show veteran became a centerpiece of Weight Watcher’s comeback plan last year when she bought a stake in the company and joined the board.
In October 2015, when Weight Watchers first announced its deal with Winfrey, the shares more than doubled in a single day. Though the previous rally has faded, Winfrey’s subsequent endorsements of Weight Watchers have given the stock temporary jolts. The shares gained 27 percent over two days last December when Oprah tweeted a video about using the weight-loss program, and there was a 20 percent bump in January after Winfrey said she had lost 26 pounds while still eating bread every day.
The latest marketing push begins next week, just before the New Year’s holiday. The coming weeks are critical for Weight Watchers: The company typically adds about 40 percent of new customers in the first quarter, when resolutions push people to seek out diets.
The stock climbed as high as $12.50 on Thursday, its biggest intraday gain since February.
The shares climbed as much as 19 percent after Winfrey announced that she’d lost 40 pounds using the program. The diet company, whose shares had fallen 54 percent this year before Thursday’s surge, is unveiling new TV ads featuring Winfrey that tout her weight loss. The media magnate and talk-show veteran became a centerpiece of Weight Watcher’s comeback plan last year when she bought a stake in the company and joined the board.
In October 2015, when Weight Watchers first announced its deal with Winfrey, the shares more than doubled in a single day. Though the previous rally has faded, Winfrey’s subsequent endorsements of Weight Watchers have given the stock temporary jolts. The shares gained 27 percent over two days last December when Oprah tweeted a video about using the weight-loss program, and there was a 20 percent bump in January after Winfrey said she had lost 26 pounds while still eating bread every day.
The latest marketing push begins next week, just before the New Year’s holiday. The coming weeks are critical for Weight Watchers: The company typically adds about 40 percent of new customers in the first quarter, when resolutions push people to seek out diets.
The stock climbed as high as $12.50 on Thursday, its biggest intraday gain since February.
