Eugene Gologursky
Shares of WW Worldwide (NASDAQ:WW) closed up ~13% Monday. The uptick comes after an article in The Wall Avenue Journal highlighted the corporate’s strategic shift to align itself with widespread medication used for weight reduction, notably Novo Nordisk’s (NVO) Ozempic (semaglutide).
Dealing with the mounting strain of widespread weight reduction drugs, the load loss services enterprise is shifting away from its signature points-tracking system. CEO Sima Sistani advised the newspaper that the system was inadvertently introducing disgrace into the load loss journey.
WW (WW) invested a hefty $106M to convey the telehealth firm, Sequence, beneath its umbrella. The acquisition, which closed in April, paves the way in which for WW (WW) to prescribe weight reduction drugs, a departure from its conventional weight reduction methods.
Oprah Winfrey, a key member of the corporate’s board, revisited her earlier stance on weight reduction medication. Opposite to her earlier characterization of those medication as “a simple approach out,” which had negatively impacted the inventory in September, Winfrey advised the Journal, “Prescription drugs are an important device for these grappling with weight and related well being challenges.”
Analysts took discover. A current D.A. Davidson notice hinted on the potential upside for WW inventory, catalyzed by Winfrey’s revised stance. The agency has a Purchase score and a $12.50 worth goal (~6% upside primarily based on Monday’s shut). Including to the bullish sentiment, Winfrey acquired practically 3.7K shares just lately, in keeping with a SEC Kind 4.
The ripple impact of Ozempic’s rise is obvious. WW reported an uptick in its Q2 membership to 4.1M, defying the standard stoop after New Yr’s resolutions are deserted.