WWE stock got a bit of a jolt on Wall Street today. The stock had been on the upswing, since jumping out of a winter slump in February and rose another 18 percent in May before taking a small dip in June before today’s upward turn.
The stock opened at $65.05, up from yesterday’s closing at around $64. The stock jumped to a high of $68.73 in the afternoon and is currently still up for the day at approx. $67.77 as of publishing. Wrestlenomics’ Brandon Thurston provided some insight as to why the stock has been up over the past year, despite an overall downturn in the market.
According to Thurston, Morgan Stanley analyst Ben Swinburne raised the price target on WWE’s stock from $60 to $75. The “price target” of a stock is the price an analyst determines by looking at the historical earnings of a company, as well as their projected earnings, and coming up with what is considered a fair price for the stock. Raising a stock’s “price target” is usually a boon to the price, as it was today.
Morgan Stanley analyst Ben Swinburne this morning raised price target on the stock from $60 to $75, which probably has a lot to do with what's moving the price today.
— Brandon Thurston (@BrandonThurston) June 15, 2022
Investors remained high on WWE and others. Despite a yearly downturn in the market, known as a “bear market,” many stocks rose on Wednesday amidst news of the Federal Reserve raising interest rates by 0.75 percent in hopes of combating inflation. It is the largest rate increase since 1994.
WWE reported record revenue in the first quarter of 2022, making $333.4 million in the first few months of the year. According to WWE Chief Financial & Administrative Officer Frank Riddick, revenue increased 27%, citing a “return to a full live event schedule” as being one of the chief factors in the rise in revenue.
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