WWE Stock On The Rise And Here Are The Possible Reasons Why
WWE stock spikes 17% due to WallStreetBets profiling it as a good buy.
Wednesday morning, WWE stock (NYSE: WWE) saw a strong spike, even going up to 17% at one point. The sudden rise of the stock was first spotted by the WallStreetBest subreddit. The same thread on the site has identified the stock as "having potential" that's possibly due for a few reasons. Obviously, the biggest being that the company will return to live events next month, video game sales are doing relatively well, recent talent cuts of huge stars, and rumors of a theoretical sale.
Economist Brandon Thurston, who specializes in the business and economics of wrestling companies tweeted out the rise as it was developing in real-time.
"Who knows where this is going, but for those who love this stat," Thurston added. "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."
WWE became a publicly traded company on October 19, 1999, with the company doing exceedingly well for a year and expanding to a themed restaurant, and eventually buying the biggest competition in 2001.
In the subreddit, the original author of the post on why this was happening had some interesting notes. The main one being that despite the event that fans have dubbed Black Wednesday and ceased touring, the company still managed to bring in almost 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. Going back to the potential sale of the company, Thurston disagrees with that notion, and if it does happen, it won't be anytime soon.
You might remember WallStreetBets as the subreddit behind the Gamestop short squeeze earlier this year which caused the video game retailer's stock price to dramatically increase from $19 at the beginning of 2021, to highs of $347. The subreddit had also taken an interest in theater chain AMC and Blackberry, causing those companies' share prices to spike as well.