WW - Why WW International Stock Just Dropped 11%
2024-01-04 14:24:43 ET
Shares of WW International (NASDAQ: WW) , formerly Weight Watchers International, tumbled 11.4% through 1:10 p.m. ET on Thursday at the same time as Eli Lilly (NYSE: LLY) stock resumed its relentless march back toward its 52 week high.
These two events are not unrelated.
Lilly stock has been buoyed in recent days by the enthusiasm for the company's new Zepbound weight loss drug, which competes with Novo Nordisk 's Wegovy and Ozempic, and threatens WW's business model of facilitating long-term weight loss over time, by offering consumers the attractive prospect of weight loss by injection. This morning, Lilly gave WW International investors a new threat to watch out for, announcing its LillyDirect e-commerce platform , permitting patients to get prescriptions via telehealth appointments , and then order "direct home delivery of select Lilly medicines through third-party pharmacy dispensing services."
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Why WW International Stock Just Dropped 11%