Mark Wahlberg's Stock Jumped 49% Today: What You Need To Know

Shares of the fitness company owned by actor Mark Wahlberg, F45 Training Holdings Inc FXLV, made a 49% bounce off the lows at Friday's opening bell, recovering from a more than 77% decline on Wednesday following a flood of unfavorable headlines.

The bounce was short-lived, though, as the stock is up a more modest 6.49% at $1.97 late Friday morning. 

What Happened: On Wednesday, Wahlberg's stock plummeted when the company lowered its outlook, announced the resignation of its co-founder CEO, Adam Gilchrist and eliminated 110 jobs. Directorship will be held by Gilchrist. Independent director Ben Coates will act as CEO in an interim capacity until a permanent replacement is found.

Instead of the previously anticipated revenues of between $255 million and $275 million, the business stated it now expects 2022 revenues of $120 million to $130 million.

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F45 projects the sale of 350–450 new franchises in 2022, down from its previous forecast of 1,500, and 350–450 net first studio openings, down from its previous forecast of 1,000.

The Wahlberg-backed club went public last year with an IPO priced at $16 per share, valuing the company at more than $1.4 billion.

Why It Matters: Wahlberg worked with Florida-based venture capital firm FOD Capital to purchase a stake in F4. The total investment was around $450 million.

The A-list actor owns 2,194,871 shares or about 2.32% of the company. Wahlberg and FOD also own an SPV (Special Purpose Vehicle) called MWIG LLC which owns 22,396,924 shares, or 23.64% of F45. FOD Capital owns 65% of MWIG while Wahlberg owns 26%.
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