The Oprah effect!

Discussion in 'Stock Market Forum' started by JR Ewing, Oct 19, 2015.

  1. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Boom!

    http://www.marketwatch.com/investing/Stock/WTW?countrycode=US

    I took half of what I bought recently for $16.07 off the table this morning - nothing like a nice 45% pop on a stock in a couple of weeks.

    I think I'll buy in pretty big on the next dip if it happens while the stock is still pretty cheap.
     
  2. Onionman

    Onionman Senior Investor

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    That's the magic of the woman. Everything Oprah touches at the moment still seems to turn to gold.

    But who knows whether the Oprah effect is something that will play out over the longer term. It's partly down to the power of branding and as long as her brand remains strong more Weightwatchers opportunities will come around. But I'd also expect the moment there's any scandal at any of her endorsements, Oprah would drop them without a second's thought.
     
  3. Rainman

    Rainman Senior Investor

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    Oprah's Midas touch apparently is gone. After weight watchers reported an $11 million quarterly loss, WTW shares plunged 30%. But that's not all, the stock has fallen by about 50% this year.

    http://money.cnn.com/2016/02/26/investing/weight-watchers-oprah-winfrey-earnings-stock/index.html
    Should she decide to bail out before she loses any money it will be the end of Weight Watchers.
     
  4. Penny

    Penny Well-Known Member

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    If the "value" to the company is anything like the "value" she brings to their advertising... well. Sorry to sound bitchy but the advertising they keep playing on Hulu where she talks about bread like it is the second coming of Jesus, and despite perfect make-up and lighting she looks... um... overweight. It certainly does not attract me to the brand.
     
  5. Corzhens

    Corzhens Senior Investor

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    As they say, the best endorsement is the consumption of the product. So when a famous celebrity is spotted dining in a restaurant, it is equivalent to an advertisement. With the stock price going up with the 10% that Oprah had bought, I guess it is a logical direction in the stock market. However, Oprah's purchase may be a barometer for trading but it's not a guarantee that the price will keep on increasing. Who knows if it will stabilize soon (that means the price will go back to the normal level before Oprah's purchase).
     
  6. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I generally buy in when these double digit selloffs occur [and take some (or most or all) off the table when they pop back up] - as long as good fundamental reasons exist to own it. Put options are also a good idea to protect such downside when holding some of the stock.
     
  7. Rosyrain

    Rosyrain Senior Investor

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    Whether you like her or hate her, Oprah does have a lot of pull here in America among women and women usually go with what she says. I happen to have a lot of respect for her because she has overcome so much in her life and has really made an empire for herself. She cares about women and wants to help them make good choices. I am not surprised at all that anything she endorses would see a rise in the stock market.
     
  8. pwarbi

    pwarbi Senior Investor

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    While she's no doubt still influential, I don't think that influence is as strong as it once was, or ever will be in the future.

    If Oprah endorses a product, then like you say, I do think that people will look more favourably on it, but that doesn't necessarily mean it will become a long term investment like what used to be the case with anything she promoted at one time.
     
  9. rz3300

    rz3300 Guest

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    Well you never really hear too much about the downsides of these types of effects, but it makes sense. What goes up must come down...we have certainly all learned that over the years. I am sure that she will be okay and make wise decisions, at least I would hope to think that she has some smart money people behind her. I bet all it takes is a little good publicity and before you know it she makes a little rebound.
     
  10. petesede

    petesede Guest

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    I always thought the same thing. Obviously she is a great woman and intelligent. But I have never seen her actually look thin or even healthy. There are a lot of people without the opportunities and freedom she has that don´t have the weight issues she has. I would trust her on issues like branding or marketing, but for weight loss.. sorry, but I would like to see someone who looks healthy.
     

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