💥Weight Watchers' Shrinkage💥
Plus: Investment Banker Earnings, a Steward Health Update, Sunpower files BK.
⚡Update: WW International, Inc. ($WW)⚡
Do y’all remember back in November 2023 when Goldman Sachs Group Inc. ($GS) released its “conviction list” and ranked WW International Inc. ($WW) at the top? We’re not kidding folks, that actually happened, and GS predicted the stock would gain 117% over the following 12 months. It was trading at $8.23/share when the news broke. So how’s it doing now, with only a few months left to go? LOL ⬇️:
Down ~90%! Practically a penny stock!! Great call vampire squid!!
WW International Inc. ($WW) reported earnings on August 1, 2024 and … well … suffice it to say, there wasn’t a whole lot in there that’ll make our friend Nelson here ⬆️ quit laughing and pointing (the stock got hammered 37% on the report). CEO Sima Sistani, bless her heart, had to get on an earnings call, endure the “Hee Haw”s and explain herself (she didn’t think running Weight Watchers would be this hard!) and articulate the company’s big vision. She said:
In order to win in this dynamic GLP-1 environment, we are completely reimagining how we operate to catalyze our path as the leading digital weight health provider.
“Reimagine,” huh? That’s one of those coded dog-whistle words that means “the quarter was f*cking horrible.” How bad, Sima? From the press release: paid subscribers plunged 6.1% YOY; revenues collapsed to $202mm, a shocking 10.6% below last year (constant currency basis); and “adjusted EBITDA” was $50.2mm, heartbreakingly flat against $49.4mm in the year-ago period. Oh, but you prefer EPS, that being a “GAAP” measure? Fully diluted: $0.29 vs. $0.65. Depressing.