ww international stock update: WeightWatchers stock falls 23% following Oprah Winfrey’s decision to leave the board.
The exit of the media icon, who has been a board member since 2015, comes at a time when WW is struggling to generate revenue. The stock fell nearly 23.2% to $2.93 in early trading and has lost more than half its value so far this year.
Winfrey will donate her WW stock to the National Museum of African American History and Culture, WW said.
She owned 1.13 million shares worth $6.34 million as of Jan. 1, according to LSEG data.
Winfrey’s donation “will help eliminate any conflicts of interest associated with her taking weight loss medications,” the weight loss service company said late Wednesday.
The talk show host said last year that she uses prescription medication to manage her weight. Barclays analyst Stephanie Davis said the New York City-based company’s shares were also hit by “serious concerns” about its growth prospects and liquidity. The stock has more than doubled in the past year on upside expectations from its acquisition of telemedicine platform Sequence, which entered the lucrative prescription obesity treatment market from Novo Nordisk and Eli Lilly.
However, the company’s 2024 revenue forecast of $830 million to $860 million was below analysts’ expectations of $896.2 million and somewhat dashed those expectations.
WW International has a lower forward price-to-earnings multiple of 13.55, a common benchmark for value stocks, compared to 17.21 for rival USANA Health.
(You can now subscribe to ETMarkets WhatsApp channel)
Download the Economic Times news app to get daily market updates and real-time business news.
Subscribe to The Economic Times Prime and read Economic Times ePaper Online and Sensex Today.
Top trending stocks: SBI stock price, Axis Bank stock price, HDFC Bank stock price, Infosys stock price, Wipro stock price, NTPC stock price.
