Oprah Winfrey is appearing on the cover of O Magazine to celebrate her weight loss progress — and Weight Watchers stock has jumped once more. The business mogul and lifestyle guru is joined by nine other women on the 2016 cover.
— O The Oprah Magazine (@O_Magazine) March 10, 2016
“This month I join forces with a legion of women, all of us declaring a win-win for our bodies and ourselves,” Oprah said of the body-positive issue. “Because I know this for sure: With age comes the understanding and appreciation of your most important asset, your health.”
Learn more about Oprah’s partnership with Weight Watchers and her weight loss progress.
Weight Watchers Stock Jumps 7 Percent With O Magazine Preview
After the April issue of O Magazine was previewed over social media, Weight Watchers shares jumped nearly 7 percent in early trading, up to $15.01 on March 11. However, early 2016 has seen hard times for the weight loss program.
In late February 2016, Weight Watchers saw a 21 percent drop in fourth-quarter net revenue. Shares dropped more than 27 percent in extended trading, sending Oprah’s 10 percent stake plunging $24 million.
Still, since Oprah Winfrey’s weight loss announcement in January, Weight Watchers’ shareholders have had a more positive outlook on the weight loss program’s future.
Oprah Winfrey’s Weight Loss With Weight Watchers
Oprah Winfrey announced on Jan. 26 that she lost 26 pounds on the Weight Watchers diet — and she ate bread every day. Eating bread every single day and still losing weight is a feat for many, but Oprah was blown away, so she tweeted about it.
As with everything the media mogul touches, Weight Watchers stock shares turned to gold just hours after Oprah’s tweet, jumping more than 20 percent to close at $13.29 a share.
Since a $43 million investment into the company in October, Oprah had allegedly made $2.36 million per pound she’d lost on Weight Watchers, according to CNBC.
Oprah-Weight Watchers Partnership
Despite the company’s revenue sitting at $1.48 billion, Weight Watchers had taken a turn for the worse in 2012, reporting declining subscriptions and revenues as consumers turned to other methods for counting calories.
Weight Watchers met with Oprah in July 2015 to discuss a partnership to save the ailing company, but Oprah is not one to back a product or company before she actually tries it for herself.
“I can’t do it unless I actually go with the program,” Oprah told them. “First of all, I’ve never endorsed anything. I’ve never been a spokesperson for anybody. So, I will have to do the program myself to see [if I like it].”
So, she did do it, and now she’s completely on board — and reaping the benefits. In October 2015, Oprah announced she purchased a 10 percent stake in Weight Watchers — which at the time was about $43 million. At the same time, she announced she was taking a seat on the board.
After Oprah’s first day of investing in the company, she gained $70 million as its stock price skyrocketed. Before Oprah’s investment, Weight Watchers stock was just under $7 a share. After her investment, the stock nearly doubled the very next day.
In November 2015, stocks were nearly as high as $27 per share. They had settled to about $11 per share in early January but rose to just over $13 with Oprah’s Jan. 26 tweet.
Over the years, many famous celebrities have been spokespeople for Weight Watchers, including Jessica Simpson, Jennifer Hudson and Jenny McCarthy. None, however, have had the impact on the stock as Oprah with her Midas touch.
While Oprah’s net worth had a rocky month in February, her impact on Weight Watchers has overall boosted the company — and herself. The media queen was worth $3 billion at the end of 2015, but is now worth closer to $3.2 billion, according to Celebrity Net Worth.
Losing weight and making more money: Sounds like Oprah’s new year is off to a great start.