After the release of the Q4 2019 Financial Report, which promoted the company’s record revenue for the year, the stock market still reacted negatively.
WWE stock ended the day at $44.50, a decrease of 9.18% from yesterday’s closing price of $49.00. The company currently has a market valuation of $3.617 billion. The company’s stock price has dropped $17.79 in the past week since the news of the departures of George Barrios and Michelle Wilson, two of the top executives.
According to an article by The Motley Fool, a number of factors contributed to the decline. Though posting record revenue in the fourth quarter of 2019 at $322.8 million, it fell short of what Wall Street predicted at $333.3 million.
Also alarming to investors was a 20% drop in live event revenue in December to $27.4 million. It is thought if fan engagement in live events is falling, television viewership may be the next drop, leaving the company in trouble. Though the company is projecting big earnings in 2020 due to the media deals, if fan engagement is down that media revenue will dry up as well, according to the article.