WW International (NASDAQ:WW), formerly known as Weight Watchers, has become a penny stock, and its debtors are .
WW stock fell 12% on March 13 and another 3.3% overnight. It was trading early this morning at $2.12 per share, a market cap of just $180 million.
In mid-2021, WW was trading at $36 per share.
The Oprah Effect
Oprah Winfrey started the latest down leg for the stock.
She had been a spokesman for WW and a member of its board. She after nine years and is now planning . In announcing her new approach of using drugs, she said she was
The new drugs were originally created to . They have delivered huge gains to Novo Nordisk (NYSE:NVO) and Eli Lilly (NYSE:LLY). Novo Nordisk makes Ozempic and Wegovy. Lilly makes Mounjaro and Zepbound. Both stocks have doubled in just the last year.
For years, WW had used a variety of psychological techniques to help people control their diet and exercise. However, GLP-1 agonists have demonstrated significant and relatively fast weight loss effects.
Last year , a telehealth company that can refer people to doctors prescribing the new drugs, for $106 million. Despite that deal, WW has lost over half its value this year after Lilly launched its own marketing effort called Lilly Direct. WW now calls itself rather than a retail brand.
This year, WW tried to get TikTok social media influencers on its side. Bloomberg has called the strategy . Instead, has been created around the drugs’ side effects and people trying to obtain them.
WW Stock: What Happens Next?
WW has lost its spokeswoman and business model. It’s hard to see what it can do against this .
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
