Why SmileDirectClub Stock Surged on Friday

What happened

Shares of SmileDirectClub (NASDAQ: SDC) vaulted higher on Friday, climbing as much as 29.4%. As of 12:51 p.m. ET, the stock was still up 12.7%.

The catalyst that drove the oral healthcare company higher was a new marketing campaign that enlists the talents of some high-profile personalities to drive interest in its teeth-straightening dental aligners.

So what

SmileDirectClub announced that it is partnering with several high-profile celebrities to launch its new Confidence Council. The company has enlisted the talents of Jonathan Van Ness, Tunde Oyeneyin, and Arielle Vandenberg as ambassadors, “to shine a light on the transformational power of a smile.”

Image source: Getty Images.

Van Ness, also known as JVN, is a famous hairdresser and star of the Netflix reality show Queer Eye. The grooming expert is also known for his podcast Getting Curious with Jonathon Van Ness.

Oyeneyin is a celebrity makeup artist and brand educator who found fame as a fitness expert and one of Peloton Interactive’s most challenging instructors.

Vandenberg is an actress and model, best known as the host of the dating show Love Island, while also having appeared on a number of fan favorite television series, including CSI: Crime Scene Investigation, NCIS: Los Angeles, and How I Met Your Mother.

SmileDirectClub notes that a recent survey suggests that 93% of respondents “agree that a straight and healthy smile increases self-confidence,” while “94% believe that increased self-confidence improves overall mood, happiness, and the likelihood to make other positive life changes,” according to OnePulse.

Now what

The company could certainly increase its brand awareness by collaborating with these high-profile social influencers. Van Ness, Oyeneyin, and Vandenberg boast 5.3 million, 482,000, and 1.4 million followers, respectively, on Instagram. This provides them with a broad platform to attract potential users for SmileDirectClub.

The company has struggled since the onset of the pandemic, with revenue that declined 12% year over year in 2020. The first nine months of 2021 have improved, with revenue climbing 8.3% compared to the prior-year period. Since the emergence of the omicron variant, however, results have suffered once again, as evidenced by an 18% decline in the third quarter, as consumers have shifted their priorities.

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