Oprah boosts Weight Watchers stock
Golden Globes speech begets 2020 speculation
Media icon, actor and entertainment executive Oprah Winfrey’s buzzworthy speech Sunday night at the Golden Globes has generated speculation that she could run for president in 2020 — but it’s also had a more immediate effect.
On her brand and net worth.
The feverish publicity rippling from Winfrey’s soaring speech, in which she hailed brave women who have spoken up about sexual harassment and abuse, appears to have translated into a sharp boost for one of her key endorsements and investments.
Weight Watchers, whose stock has skyrocketed since Winfrey bought 10% of the company in October 2015, got another lift Monday.
The dieting company’s shares jumped 12.2% in trading Monday to close at $52.62, up $5.71.
Investors are presumably thrilled at the enormous and unexpected round of positive publicity for Winfrey’s brand.
Weight Watchers did not respond to a request seeking comment Monday. A spokesperson for Winfrey also did not respond.
CNN’s Brian Stelter reported Monday that Winfrey is “actively thinking” about running for president.
Since Winfrey enthusiastically backed Weight Watchers, crediting it with helping her shed pounds, the company has been on a tear. Membership, sales and profits have soared.
Winfrey, who also serves on the company’s board, bought her stock at $6.79 apiece for a total investment of $43.2 million in 2015, according to a Securities and Exchange Commission filing.
As of Jan. 2, she owned 9.9% of the company, according to S&P Global Market Intelligence. She is also CEO of the cable channel OWN.
With 6.37 million shares in Weight Watchers, she made a paper profit of more than $36 million from Friday’s closing price through the end of Monday. That’s still a drop in the bucket for Winfrey’s net worth, which Forbes has estimated at $2.8 billion.
But it could go a long way toward jump-starting a presidential campaign.