Why WW (WW) Shares Are Sliding Today

What Happened:

Shares of personal wellness company WW (NASDAQ:WW) fell 27.7% in the pre-market session after the company reported fourth-quarter results with its gross margin, operating margin, and EPS falling short of Wall Street's expectations. Free cash flow also turned negative as it failed to sustain the positive cash flow recorded last quarter. Furthermore, WW's full-year revenue and operating income guidance missed analysts' estimates as the company decided to wind down its low-margin consumer products business. Overall, this was a bad quarter for WW.

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What is the market telling us:

WW's shares are quite volatile and over the last year have had 91 moves greater than 5%. But moves this big are very rare even for WW and that is indicating to us that this news had a significant impact on the market's perception of the business.

WW is down 65.6% since the beginning of the year, and at $2.96 per share it is trading 77.6% below its 52-week high of $13.21 from October 2023. Investors who bought $1,000 worth of WW's shares 5 years ago would now be looking at an investment worth $146.07.

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