WeightWatchers’ $106 Million Deal Turns into Your 174% Winner

By TradeSmith Editorial Staff

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WeightWatchers, aka WW International Inc. (WW), is an American icon: Its weight-loss program has been a staple of cable TV commercials since the 1960s.

But when it announced the acquisition of telehealth provider Sequence for $106 million in March, few understood an evolution was taking place, turning WeightWatchers from a diet company into a healthcare company.

And it was destined to be a profitable evolution.

Sequence gives WW access to a new digital market of prescription-weight-loss drugs, connecting people with medical doctors who can prescribe drugs like Ozempic and Wegovy.

Wegovy and Ozempic are brand names for the same generic GLP-1 drug, semaglutide. The difference: Wegovy is specifically approved as a weight-loss treatment while Ozempic is approved for type 2 diabetes. Both are sold by Novo Nordisk (NVO).

Those weight-loss drugs are big business.


Here’s The Wall Street Journal on the situation:

“But because the majority of adult Americans are overweight—a trend that’s on the rise in many other countries as well—investors and analysts are excited about these medications’ huge potential for years to come, especially if more are covered by insurance. If analysts’ outlooks for these drugs are correct, they could easily become multibillion-dollar blockbusters.”

Just in 2022 alone:

  • Ozempic sales totaled $8.56 billion.
  • Wegovy sales totaled $900 million.

And the momentum is building in 2023:

  • Ozempic sales reached $3.2 billion in the second quarter.
  • Wegovy sales racked up $1.1 billion in the second quarter.
Tapping into this new market has created a game-changing opportunity for WW International, as Wall Street had previously thrown this stock out as a has-been.

But our friends at Derby City Insights, using proprietary consumer data from LikeFolio, saw something unfolding on Main Street that showed this was going to be bigger than most people could have anticipated.

Immediate Data Equals a Big Investing Edge

Real-time consumer insights revealed that WW International was gaining momentum with consumers under new leadership — outperforming other weight management services and home fitness companies in demand while maintaining high levels of Consumer Happiness.

Also, on March 8, after seeing that Purchase Intent mentions — how many folks are buying or thinking about buying a service or product — Derby City Insights sent out a report about the start of a slight uptick it saw in Purchase Intent.


It was fortuitous of what was to come.

WW stock closed at $5.46 on March 8.

Fast forward a few months to August 18, and WW opened at $9.62… a 76% gain in a little over five months.

And for the members of LikeFolio Investor, it was an even bigger win.


The stewards of the service — Andy and Landon Swan — alerted members in December 2022 about WW’s profit potential.

They issued a bullish LikeFolio Investor report on the stock in December, when it was trading near $3.70, and predicted that WW shares could climb by more than 100% within the next two years.


It was a bold prediction but they stood by it, knowing the power of consumer sentiment data in predicting future moves in the stock market.

And the projection of the triple-digit opportunity happened in a fraction of the time.

LikeFolio Investor members were rewarded last week when Andy and Landon sent instructions to cash out — with many having had the opportunity to bag a 174% gain.

But selling that position doesn’t mean the brothers are turning sour on this industry.

Not in the slightest.

You can learn about another stock in the healthcare industry they think could surge triple digits — as well as two other bonus picks — by clicking here.