I found this piece very interesting, and I’m posting here in case others do as well
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But hey… superstar absences…
The article’s premise is pretty poorly timed. The earnings call is to primarily talk about earnings. Wrestlemania and a Saudi show happened in Q2. In Q2 2018 WWE reported a revenue jump of $100M. If revenues increase even half of that from Q1 2019 investors will be happy.
Yes there will be some talk of competition and the declining ratings. But Vince & co will answer those by repeatedly pointing to the hires of Bischoff and Heyman to help with that and shrug off any other questions until Q3.
Have to agree with @RedRaider07
I follow the stock closely and its dropping below 70$ is somewhat shocking given the expected good quarter from a revenue perspective.
That said, I’m super curious to hear how they talk about house shows that were cut due to the wild card rule this par quarter, as well as plans going forward, and whether they talk more openly about revenue streams such as Saudi Arabia in the face of the obvious negative trend in ratings. For the immediate, ratings trends won’t hurt WWE and it’s very likely we’ll see them bounce up on Fridays by virtue of SD being on Fox.
Strong revenue in Q2, a likely positive ratings trend by virtue of being on Fox in Q4, and the prospect of more content like NXT being picked up by fox (not to mention the long awaited Network price increase). It doesn’t feel like the stock should be this much lower than. I think it’s in a nice valley right now to buy. So long as there isn’t a crushing consumer engagement trend continuation we saw in Q1 when it comes to social media engagement and merch sales (the latter of which should be helped by Mania).
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