WWE shares fell further today, dropping 0.65% to $27.35. It is down nearly 15% from its high of $31.98 set two weeks ago.
I noted yesterday that the stock took a big hit after the Forbes article came out about the WWE Network. The Forbes story noted 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. It 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 he believes their core is around 700,000.
Forbes has a story today titled, "WWE Shares Down 15% -- Was It Something We Said?" They mentioned our article from yesterday, and stated that their article probably might have "just added to concerns" about the recent surge of the stock. Daniel Moore with CJS Securities called the sell off "a perfectly reasonable pullback" and set a $26 price target for the stock.
As noted, the next couple months will be important for investors, as WWE will reveal their new television rights deal. They will also announce the number of subscriptions for the Network on April 7th. Moore said that if WWE can hit 3 million subscribers, then it's a $40 stock.