WWE Stock soaring

[TWJC: The Beginning]

The WWE's stock has been surging and has more than doubled since last November. It isn't to all time height yet, but it's higher than it usually is.

Obviously, markets go up and down for many reasons. Personally, I feel like this is from the strong retention and growth of the Network (that has something like a 91% satisfaction rate) and the positive outlook from all the fresh young talent. Could also be people knowing WWE generally starts ramping up

What are your thoughts on why the stock is going up?

 

[Jeff Deliverer of Mail]

I would say the WWE Network and its large library of classic matches. I live in Canada and I don't have the luxury of watching any WWE Network show that I want...I have to wait and see what The Network is showing day by day. I only got it for the cheap PPVs really...but its nice to watch the classic stuff when it comes on.

 

[George Steele's Barber]

Network numbers have not retreated as much as expected. Foreign subscriptions have been a nice surprise. A Dutch guy named de Mol who has made some successful reality shows bought 6% of the company which will lead investors speculating that he and WWE has bigger plans. That's all I got. Frankly I am impressed with how well the Network is doing. I didn't think it would hold up over a million during June and July.

 

[Jack-Hammer]

When it comes to the stock market, pretty much anything can happen. From an overall standpoint, there have been times in which WWE has had an overall stronger quarterly report than the one from this past Thursday in which the stock has tanked. For instance, when the Hogan scandal hit, the stock went down and the stock's overall worth fell by $50 million. The quarterly report this time around was still strong overall and there was a good deal of enthusiasm about the success of the WWE Network. There's about 1.2 million paying subscribers to the network, international revenue was up, etc. but I think one thing that helped is that a major financial publication, I want to think it was Forbes but I won't swear on it, within the past month or so stated that WWE's stock was undervalued and that it should be worth somewhere in the $19 to $23 per share, and I think the stock was trending around $14.50 or so when this came about. The assessment of the stock did help some, but the stock has soared over the past week. At opening bell last Thursday, WWE's stock was worth $1.24 billion and it was worth about $1.48 billion by the end of trading as the stock surged by in excess of 20%. The stock went up a bit more Friday & Monday and surged another 10.21% at the closing bell today so if I've done my math right, which is hit & miss sometimes , WWE's stock will be worth roughly $1.86 billion. So yeah, over the course of less than a week, the value of WWE's stock has increased by well over $600 million.

 

[Jack-Hammer]

Network numbers have not retreated as much as expected. Foreign subscriptions have been a nice surprise. A Dutch guy named de Mol who has made some successful reality shows bought 6% of the company which will lead investors speculating that he and WWE has bigger plans. That's all I got.

John de Mol, Jr. is a Dutch media tycoon who's one of the men behind the Endemol production company and is the creator of shows like Big Brother, Deal or No Deal, The Voice and various others.

 

[TWJC: The Beginning]

When it comes to the stock market, pretty much anything can happen. From an overall standpoint, there have been times in which WWE has had an overall stronger quarterly report than the one from this past Thursday in which the stock has tanked. For instance, when the Hogan scandal hit, the stock went down and the stock's overall worth fell by $50 million. The quarterly report this time around was still strong overall and there was a good deal of enthusiasm about the success of the WWE Network. There's about 1.2 million paying subscribers to the network, international revenue was up, etc. but I think one thing that helped is that a major financial publication, I want to think it was Forbes but I won't swear on it, within the past month or so stated that WWE's stock was undervalued and that it should be worth somewhere in the $19 to $23 per share, and I think the stock was trending around $14.50 or so when this came about. The assessment of the stock did help some, but the stock has soared over the past week. At opening bell last Thursday, WWE's stock was worth $1.24 billion and it was worth about $1.48 billion by the end of trading as the stock surged by in excess of 20%. The stock went up a bit more Friday & Monday and surged another 10.21% at the closing bell today so if I've done my math right, which is hit & miss sometimes , WWE's stock will be worth roughly $1.86 billion. So yeah, over the course of less than a week, the value of WWE's stock has increased by well over $600 million.

I saw that and the Dutch guy on a video. Who are WWE's main investors? I would think that it's mostly people in and around the industry. Then again, it's a huge global company so I suppose hedge fund managers and day traders buy and sell it too.

The crazy thing to me is that, because of the huge spike a about 18 months ago, it's not even at the top of it's bolinger band moving average (which is a decent technical indicator that it's not peaked yet).

I'd also expect more people would buy as they ramp up for Wrestlemania season.

The Dutch guy is interesting. A 6% purchase is pretty damn big. That alone can move the needle. It gets positive momentum, people see him buying, they buy, more positive momentum. Could just be a weird market quirk as stock price over a short time has more to do with speculation than how a company is actually doing in the long run.

 

[Seosa]

John de Mol, Jr. is a Dutch media tycoon who's one of the men behind the Endemol production company and is the creator of shows like Big Brother, Deal or No Deal, The Voice and various others.

I had a feeling he was linked to Endemol.

 

[Un-Bo-Lievable Jeff]

The network seems to have had a lot to do with it. It was lower in January than in November, and it dropped to just below $10 a share. It took a big boost in mid January, dropped a bit in mid March, was steady till about mid May and then has continually risen since then.

My guess is the network has a lot to do with it. Can't be a coincidence that it has been going up since it was launched

 

[whoopin' ass]

It's simple - this time last year they had just launched the network in the States and that cost them money so revenue went down. But once they did that, everywhere else in the world was easy and cost them virtually nothing extra so they stopped losing money there and started making some. You say your company's profits are up 15% from last year, most people don't ask why - they just assume you are doing good and your stock goes up. Consider this - they released thier subscription numbers last week and they have gone down since Mania. If they are showing such an increase in revenue, shouldn't their subscription numbers be going up? It isn't that they are making great profits, they are just not losing as much money as last year so it looks better.