WWE's publicly traded stock is on the rise. The company's stock closed at a ten-year high yesterday at $19.00 per share and today was trading as high as $20.35 a share. This sudden spike in WWE's stock value price is being widely attributed to the company's announced February 24th launch of the WWE Network, a direct-to-the-consumer streaming video service that could reel in hundreds of millions if it is successful.
WWE Network was announced earlier this month as part of the CES trade show in Las Vegas, and it is widely considered by many analysts to have been the hot topic within the tech industry coming out of the annual convention. The 24/7 streaming service will offer WWE’s massive library of classic content similar to Netflix Instant on a wide variety of internet-connected media devices in addition to a live channel with the company’s 12 monthly pay per view events including Wrestlemania. The biggest selling point is the effective price of $9.99 per month with a six month commitment.
Obviously WWE has to score on the prospective goal of getting 1 million subscribers. and to break even on their investment. There has already been some flack from WWE’s pay per view distribution partners including DirecTV which has come out against the Network..
WWE is not an absolute darling on the market right now, as it has some serious doubters in the investment field. "I think they're already on the top rope after that 111% increase last year.There's nowhere to go but down" said portfolio manager John Stephenson during a CNBC interview last week when he was asked to give insight on buying WWE stock at this time. "You're looking at a model that's in decline and valuation is stupidly high."
Yet the company has been confident that this will be a gigantic win for the WWE and it’s fans. It appears from today’s stock news that Wall Street is confident in that WWE is going to win as well.
Pro Wrestling Examiner’s Perspective: This news continues to show how WWE is making a lot of positive momentum with the WWE Network in the business world which is critical for them as an IPO. Though WWE is not the first to do an “over the top” service like this, the fact that the Network has PPV profits tied into it with a loyal fan base of millions around the country, it just sounds like a slam dunk business move. WWE has the consistent TV ratings and the research in digital distribution that shows they have the right audience for this Network and now is the time to launch it. Follow the Pro Wrestling Examiner on Twitter: @KevKellam