WWE Stock Surges Amid Budget Cuts & WallStreetBets Spotlight
WWE stock is up 17% this morning following a trending post on Reddit’s WallStreetBets subreddit. A thread on the platform has identified WWE as having potential due to the return of live events, video game sales, recent talent cuts, and rumors of a potential sale.
Brandon Thurston of Wrestlenomics has been following the developing situation.
Good morning. r/wallstreetbeats has taken an interest in $WWE. It’s up 10% in premarket trading.
— Brandon Thurston (@BrandonThurston) June 9, 2021
Shortly after the market opened this morning, WWE stock rose 17%.
A few minutes into the opening of the market and the stock price is +17%
— Brandon Thurston (@BrandonThurston) June 9, 2021
The stock got up as high as 20% but then fell back.
$WWE went as high as +20% on the day for moment, hit its 52-week high of $70, then fell back.
— Brandon Thurston (@BrandonThurston) June 9, 2021
Thurston believes Vince McMahon has made $300 million today:
Who knows where this is going, but for those who love this stat…
With WWE stock up 16% currently, the market value of Vince McMahon's ownership (nearly 29 million shares) is currently almost $300 million more valuable than it was yesterday.
— Brandon Thurston (@BrandonThurston) June 9, 2021
Why Is WallStreetBets Interested In WWE Stock?
3 key reasons have been listed as to why WallStreetBets is taking an interest in WWE. The first is the company’s pending return to live touring.
“WWE will resume touring. Despite this revenue being missing in 2020, they managed to haul in nearly a billion dollars. So the second half this year, and all of next year, is going to be pretty good. Not only will revenues be driven up, but fan engagement and brand appeal will go up as well,” the author wrote.
Also a factor in WallStreetBets’ interest, is WWE video game sales.
“WWE Supercard is Take Two Interactive’s (a $52b company) highest grossing mobile game, and it’s growing at around 23% YOY. A lot of that money will flow into WWE. WWE also sells rights to other titles. As video games continue to grow, so to does WWEs revenue,” the author continued.
Finally, rumors of possible sale are also driving interest in WWE stock on WallStreetBets.
“About a week ago, WWE cut some talent assets. Some apparently important guy tweeted that it’s likely due to them cutting costs and preparing for an acquisition,” the author wrote.
