World Wrestling Entertainment (WWE) is a media and entertainment company focusing on professional wrestling. Its stock (NYSE: WWE) has seen ups and downs over the years. With streaming and new content deals, WWE aims to increase revenue, but faces challenges like declining TV viewership. This article looks at key factors for investors to consider when evaluating WWE stock.
WWE finances and performance history
As an entertainment company, WWE relies heavily on content rights fees and advertiser spending. Its revenue was over $1 billion in 2021, but declined over the prior two years due to the pandemic. WWE has negotiated deals with Fox and NBCUniversal to air its wrestling content in the US. It’s also expanding offerings on streaming platforms like Peacock. But declining cable subscriptions remains a long term threat.
Global expansion opportunities
WWE makes about two thirds of revenue in North America. It sees global markets, especially India, as major growth opportunities. Deals like Sony Pictures Networks India broadcasting WWE’s programming could support international expansion.
Potential for new content formats
While WWE is best known for professional wrestling, it has dabbled in other entertainment formats like studios and films over the years. Recently, WWE partnered with Blumhouse to produce a horror film. New content formats, if successful, provide upside potential.
WWE stock offers a unique play on live entertainment and professional wrestling content. Its fortunes are heavily tied to negotiating strong content deals and expanding its audience globally. Risks such as declining viewership and rising costs exist, but a shift towards streaming and premium content could benefit WWE in the long run.