What Happened?
A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Specialized Consumer Services company WeightWatchers (NASDAQ:WW) jumped 19.4%. Is now the time to buy WeightWatchers? Access our full analysis report here, it’s free for active Edge members.
- Real Estate Services company Opendoor (NASDAQ:OPEN) jumped 12.5%. Is now the time to buy Opendoor? Access our full analysis report here, it’s free for active Edge members.
- Apparel and Accessories company VF Corp (NYSE:VFC) jumped 10.7%. Is now the time to buy VF Corp? Access our full analysis report here, it’s free for active Edge members.
- Leisure Facilities company United Parks & Resorts (NYSE:PRKS) jumped 10.1%. Is now the time to buy United Parks & Resorts? Access our full analysis report here, it’s free for active Edge members.
- Real Estate Services company Offerpad (NYSE:OPAD) jumped 12.5%. Is now the time to buy Offerpad? Access our full analysis report here, it’s free for active Edge members.
Zooming In On WeightWatchers (WW)
WeightWatchers’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. But moves this big are rare even for WeightWatchers and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 15 days ago when the stock gained 10.6% on the news that the company reported third-quarter 2025 financial results that surpassed revenue and adjusted profit expectations, despite a significant miss on bottom-line earnings. While total revenue fell 10.8% year-over-year to $172.1 million, the figure still comfortably beat analyst estimates. However, the company reported a GAAP loss of $5.76 per share, which was substantially worse than Wall Street had anticipated. Despite the loss, investors appeared to focus on other positive aspects of the report. Specifically, WeightWatchers achieved an adjusted EBITDA of $42.78 million, which was well ahead of forecasts. Furthermore, management signaled confidence by slightly lifting its full-year guidance for revenue and providing an outlook for adjusted EBITDA that was above analyst estimates.
WeightWatchers is down 10.6% since the beginning of the year, and at $24.13 per share, it is trading 46.3% below its 52-week high of $44.89 from August 2025. Investors who bought $1,000 worth of WeightWatchers’s shares at the IPO in June 2025 would now be looking at an investment worth $893.52.
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