Article Possibly Causes WWE Stock To Take A Big Hit
Source: ForbesAs noted earlier, Forbes has an interview with Vince McMahon, who discussed the Network and the future of the company.
The recent surge in the stock was discussed, with the story noting that while the stock price has tripled in the past six months, revenues "have barely budged over the last few years," and profits have been stagnant.
The article also noted that Intrepid Capital Management sold their 10% stake in the company this past January. Intrepid portfolio manager Jayme Wiggins stated that while the WWE Network "is a slam dunk for a die-hard fan," he doesn't believe that they will be able to draw 1 million subscribers, and that their core is around 700,000. From the Forbes article:
Not everyone is sanguine about those prospects, however. Intrepid Capital Management was WWE's largest outside shareholder until January 2014, when it sold its 10% stake in the public float at a 100% profit. Intrepid portfolio manager Jayme Wiggins believes the WWE Network will be a tougher sell.
It should be noted that the stock took a big hit this afternoon around 1pm ET after the article came out. At the time of this writing, it is down 7.34%.
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