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WW International - AI Stock Analysis
Analysis generated December 16, 2024
WW International, formerly known as Weight Watchers, is a global wellness company that offers weight management services through its various platforms. The company provides a wide range of products and services, including weight loss programs, health and wellness resources, and community support. WW International has built a solid reputation in the industry, mainly due to its science-based approach and the flexibility it offers its users.
Fundamental Analysis
Revenue: In the last quarter, WW International generated $194 million in revenue. While this indicates a 4.53% decrease from the previous quarter, it presents a 1.31% increase compared to the same quarter last year. This year-over-year growth suggests that the company may be recovering or stabilizing.
Net Income: The net income for the last quarter stood at $46 million. However, this figure represents a 298.51% decrease from the previous quarter and a 205.63% decrease compared to the same quarter last year. This sharp decline in profitability is alarming and highlights underlying issues that the company may be facing.
EBITDA: The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the last quarter was $36 million. This marks a 178.50% decrease from the previous quarter and a 179.95% decrease compared to the same quarter last year. Such significant declines in EBITDA point to potential operational inefficiencies or increased costs.
Technical Analysis
Stock Price: Today's stock price is $1.62, which shows a striking increase of 84.09% compared to a month ago. This indicates a positive short-term trend. However, the price has plummeted by 78.54% compared to a year ago, raising concerns about the company’s long-term viability.
Trend: The stock is currently in a bullish trend. The Simple Moving Average for the last 10 days (SMA10) is $1.45, slightly higher than the previous SMA10 of $1.43. This further indicates a potential upward trend in the price movement.
RSI: The Relative Strength Index (RSI) is at 68.4, which falls in the neutral range. This suggests that the stock is neither overbought nor oversold at this time.
Alternative Data Analysis
Job Postings and Employee Sentiment: WW International has 90 open positions, reflecting a 23% increase in job postings in the last couple of months. This could be a positive sign, indicating potential growth and expansion. However, only 19% of employees have a positive business outlook, a concerning figure that has dropped by 14% recently.
Customer Acquisition: The company’s website has approximately 3.2 million visitors, but the number of visitors has decreased by 31% in the last couple of months. This could indicate a decline in customer interest. Additionally, 1,100 users are estimated to download the company’s mobile apps daily, but app downloads have dropped by 24%, signaling potential customer loss.
Customer Engagement: WW International boasts 1.8 million followers on Instagram with no significant change recently, while its Twitter page has 280,000 followers, down by 2% in the last couple of months. This suggests a slight reduction in customer engagement.
AI Score: According to AltIndex’s AI score, which evaluates a company based on fundamental, technical, and alternative data analysis, WW International has a score of 39. This is categorized as a sell signal, pointing toward potential future downside.
Conclusion and Recommendation
Based on the analysis, WW International exhibits mixed signals across different evaluation metrics. While the firm shows positive short-term stock movement and potential for growth expansion through job postings, there are significant concerns regarding its profitability, customer acquisition, and employee sentiment.
The drastic year-over-year and quarter-over-quarter declines in net income and EBITDA, coupled with a troubling AI score of 39, suggest caution. Even though the stock is in a bullish trend, the long-term viability remains questionable. Given the data, a comprehensive review and cautious approach are recommended.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
