WWE News

WWE Stock Jumps 11% Following Record Profits

WWE stock price

Following a positive fourth quarter financial report, WWE stock rose 11% before closing at $51.71 on Friday in a strong trading day for the company.

After end of trading on Thursday February 3rd, WWE released their Q4 and end of year financial report to investors, revealing a record $1 billion revenue for 2021. This figure marked a 12% jump in revenue from the previous year, with the fourth quarter up 30% to $310.3 million.

Investors clearly felt bullish about the stock following the report, quickly backing it upon market open on Friday to a daily high of $53.13, up 11% from Thursday’s close of $47.81.

The Q4 report attributed the rise in revenue to international live events, plus high ticket and merchandise sales associated to the return to live events in July, and laid out a positive outlook for the company in 2022.

WWE Chairman and CEO, Vince McMahon had the following to say on WWE’s Q4:

“In 2021, we reached a significant milestone of over $1 billion in revenue, for the first time in the Company’s history. We ended the year with strong performance across each of our business lines that reflected the engagement of a wider audience with distribution on new digital platforms, including Peacock, and the return of fans at our live events.”

“We expect the execution of key initiatives in the coming year, such as the licensing of network content in international markets, monetization of new original series, and the continued shift to a stadium strategy for WWE’s premium live events, will further expand the reach of our brands and enhance the value of our content.”

JPMorgan’s David Karnovsky noted that WWE’s outlook fell roughly in line with analyst consensus, but was better than some feared. However, despite the record numbers, JPMorgan have cut WWE’s target price from $62 to $58.