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.
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.
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.
