WWE Market Value Drops $1 Billion Following Hierarchy Shake-Up

Huge stock drop followed co-Presidents exodus...

On Thursday afternoon, WWE issued a press release, announcing the departures of co-Prsidents George Barrios and Michelle Wilson, effective immediately.

Shortly following the release, WWE's stock value began to plummet in after-hours trading, dipping as much as 27 percent before the market opened on Friday morning, equating to roughly a loss of $1 billion.

WWE's stock price currently sits at $48.88, with an estimated market value of $3.84 billion.

A report published by Fightful cites different forecasts from several analysts, with updated projections for the company.

Per Bloomberg, John Belton reduced WWE's stock price target to $50 from his earlier $80 rating, "the release announcing the changes (removal of Barrios and Wilson) was vague." Alan Gould of Loop Capital agrees with Belton on the price target reduction from $80 to $50, and lowered his estimation for WWE's adjusted earnings before interest, tax, depreciation and amortization from $390 million to $350 million.

MKM Partners' Eric Handler sees the situation differently, believing that the drop doesn't exactly forecast more bad news ahead.

Handler puts his price target at $92 a share, saying, "Given the known step-up in the domestic TV rights deal, we do not believe the company is in a ‘precarious’ financial position."

WWE reports its Fourth Quarter earnings on Thursday, February 6.

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Justin Henry

Written by Justin Henry

In addition to writing lists and commentaries for Cultaholic, Justin is also a features writer and interviewer for Fighting Spirit Magazine, and is co-author of the WWE-related book Titan Screwed: Lost Smiles, Stunners, and Screwjobs.