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Weight Watchers stock extends selloff; Oppenheimer expects new marking campaign to correct 'missteps'

Tomi Kilgore

Shares of WW, formerly known as Weight Watchers International Inc. , shed 1.8% toward a fresh 2-year low in morning trade Monday, after Oppenheimer analyst Brian Nagel said that while they not track a "very reasonable" valuation, they are "apt to trade sideways" until there is evidence that subscriber growth is emerging. After a meeting with management on Friday, Nagel said the company now understands that the shortfall in subscriber growth in early 2019 is likely the result of not adequately communication the message about the shift to more of a wellness company than a weight loss company. He said the company is set to launch a new marketing campaign to correct the missteps of its messaging. And while the company is prudently watching expenses, it is not planning significant cost-cutting moves. The stock has plunged 52.6% over the past three months, while the S&P 500 has climbed 18.5%.