WW - Oprah's Weight Watchers Contract Extension May Not Be Enough for a Long-Term Share Rally
Talk show legend Oprah Winfrey is going on tour for WW International, Inc. (NASDAQ: WW) starting next month, and the weight management company is betting that the "Oprah effect" will be in full force. Oprah will stop in nine cities, interviewing notables including former first lady Michelle Obama and singer Lady Gaga, in events focused on wellness. WW stock has rallied nearly 9% since the company announced it had renewed its alliance with Oprah this month, but gains may be short-lived.
While Oprah's tour will be a popular event -- WW in its November earnings call said tickets were 80% sold out -- it may not be enough to boost the company's revenue and stock price over the long term.
IMAGE SOURCE: GETTY IMAGES.