tiprankstipranks
Market News

Why Did WWE Stock Fall 3.6% on Friday?

Story Highlights

Is WWE CEO Vince McMahon’s future in jeopardy? Will the investigation into his alleged misconduct impact the company’s stock price?

Vince McMahon, the CEO and Chairman of World Wrestling Entertainment, Inc. (NYSE: WWE), has stepped down until the investigation into his alleged misconduct is completed, StreetInsider.com reported, citing the company.

The announcement comes after reports of McMahon agreeing to pay $3 million to John Laurinaitis, an ex-employee, in January. Laurinaitis, who led Talent Relations at WWE, allegedly had an affair with McMahon.

During the course of the investigation, Stephanie McMahon, Vince’s daughter, will serve as Interim Chairwoman and Interim CEO of the entertainment company, and Vince will fulfill his creative content responsibilities.

Wall Street’s Take

Last week, Guggenheim analyst Currey Baker maintained a Buy rating on the stock and raised the price target to $82 from $75 (31.3% upside potential).

In a research note to investors, Baker said that the company has been “tightly managing costs” and that there has been “no slowdown in consumer demand for live events or consumer products.”

Overall, the stock has a Moderate Buy consensus rating based on two Buys and five Holds. WWE’s average price target of $68.29 implies 9.4% upside potential from current levels. Shares have gained 31.2% over the past six months.

Investor Opinions

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on WWE, with 9.1% of investors on TipRanks increasing their exposure to the stock over the past 30 days.

Conclusion

The news was not taken positively by the investors and WWE stock lost 3.6% on Friday to close at $62.51. Investors should wait and watch how the investigation unfolds and whether Vince will return as the Connecticut-based company’s CEO.

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More