Oprah Winfrey is shaking up the $65 billion U.S. weight loss market. Last week, she bought a 10 percent stake in Weight Watchers International and joined its board of directors. As a result, the diet company’s stock more than doubled in value.
Oprah’s endorsement comes at a critical juncture for the struggling company, which has experienced 10 straight quarters of declining sales. More and more consumers are turning to high-tech activity trackers and Smartphone apps to manage their diets, and some investors question whether Weight Watchers can remain relevant in an increasingly competitive environment.
Will Oprah’s endorsement help turn around the company’s flagging revenue, or do the problems at Weight Watchers extend too far? In this article, we turn to research firm Marketdata Enterprises for some possible answers.