NASDAQ has published an online article breaking down WWE’s recent success with the stock market. NASDAQ is reporting that next year’s big projected revenue growth is expected to translate into even more profit growth. They are admittedly saying that WWE is going to be facing stiff competition in the future and they name Netflix, Disney, Activision, and the rise of e-sports as some examples.
NASDAQ goes into detail about a few years ago when WWE announced a lackluster deal with NBC Universal.”That was the same year WWE attempted to deliver a standalone streaming version of its product. However, they found a lackluster response from consumers who had myriad alternatives like new video games and streaming video options. The web has democratized distractions.”
They think that over the next five years, WWE has the most financial upside potential. “One of those catalysts is a trio of new international TV deals in China, the Middle East and India. Whereas wrestling may be reaching a peak in the United States, it’s just entering a high-growth pace in other parts of the world. To spark further interest, organizers feature home-grown wrestling stars on the WWE circuit.”
Its highly believed that WWE is now very adept with creating and monetizing content. “In the meantime, management might start to use the third filmed hour of its popular SmackDown events that only air two hours of content. That might add about $50 million in annual revenue.” The bottom line is that investors cannot ignore WWE anymore. “With the international community just now opening up in earnest to WWE, it may easily have many more years of runway to move along before saturation becomes a threat to growth.”
Analysts say WWE’s stock is worth $96 per share, up more than 10% from the current WWE stock price. As shares gain in value though, the consensus target will likely grow. You can read the complete article on NASDAQ’s website.
