NEW YORK (TheStreet) -- Weight Watchers (WTW) stock is surging by 21.35% to $23.50 on heavy volume following the Christmas Eve debut of the company's 60-second commercial featuring media mogul Oprah Winfrey.
Yesterday, Winfrey tweeted the video advertisement to her more than 30 million followers.
Earlier this year, Winfrey took a 10% stake in the beleaguered company and shares consequently surged. She has joined the board as well and agreed to be featured in advertisements.
The commercial is Winfrey's first advertisement for Weight Watchers. In it she explains why she joined the program.
Since beginning the Weight Watchers program in August, Winfrey has lost 20 pounds.
Additionally, shares of Weight Watchers might be benefiting from a phenomenon referred to as New Year's Resolution trade. Some investors contend that shares of companies that cater to New Year's resolutions, such as weight loss, receive a year-end boost.
However, Weight Watchers stock has declined by an average 1.2% and median 0.1% the last five trading days of the year for the past 10 years, suggesting that it is not impacted by New Year's Resolution trade, according to Barron's.
About 10.95 million shares of Weight Watchers have been traded so far today, well above the company's average trading volume of roughly 2.5 million shares per day.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation: