Stitch Fix shares pop on speculation of Oprah taking stake in the company

Investing

Stitch Fix shares jumped more than 14 percent Wednesday afternoon on speculation via social media that media mogul Oprah Winfrey would be taking a stake in the subscription box company.

A representative for Winfrey later told Bloomberg the speculation wasn’t true. Stitch Fix declined CNBC’s request for comment.

Stitch Fix’s stock later trimmed back more than half of its gains and was last up about 6 percent.

Winfrey is known for her role at Weight Watchers since becoming a brand ambassador and taking a stake in the weight-loss platform, starring in its commercials and marketing materials. Weight Watchers shares have accelerated tremendously in recent months and are up more than 230 percent from a year ago.

At Stitch Fix, the stock has been on a tear of late as the platform has been growing its active user base and growing its bench of retail executives. The company also recently rolled out a line for kids apparel, expanding beyond those for women and men.

Stitch Fix, which went public late last year, has a market capitalization just around $2.6 billion today. The stock hit a 52-week high Wednesday of more than $29 apiece.

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