Oprah Weight Watchers, Stock Takes A Plunge

NICHOLAS KAMM/AFP/GETTY IMAGES

Oprah Loses $27 Million in Weight Watchers Stock Plunge - "Nobody can put a company on the map the way Oprah Winfrey can," owner Lori Karmel said at the time.

Winfrey was an instant kingmaker and women across American took her word as gospel.

But Oprah’s power began to fade in 2011 when she ended her daily show to focus on her OWN network.

And that network? It struggled for years until Winfrey enlisted her pal Tyler Perry to produce the channel’s only hit shows.

Think about it: an entire 24/7 channel programmed and endorsed by Oprah and its only true success comes from a handful of scripted series from Perry — someone who was already a Hollywood mogul.

This kind of spotty track record could not have been what Weight Watchers was hoping for when it partnered with Oprah last year selling her a 10% stake for $43.2 million. She also joined the company's board of directors, became a spokesmodel for the brand, and went on its diet.

And she did her part, enlisting her best friend CBS morning anchor Gayle King on the diet and posting endless updates on social media.

Initially, the strategy worked, sending the beleaguered company’s stock soaring from $6.79 per share in October to $26.61 a month later.

Despite that investor interest, the company was still struggling. On Thursday, the company reported a suprise 21% drop in fourth-quarter revenue, which sent its shares tumbling more than 28%, down to $11.25 a share.

That collapse cost Winfrey $27 million on paper, though the share price is still above what she bought them for originally. But, if this was the old Oprah, the company’s stock would be soaring, not tanking.

Maybe the fat lady has truly begun to sing.