Buy WWE Shares If You Believe Wrestlemania 31 Had 200000 PPV Buys
March 31, 2015 - WWE
World Wrestling Entertainment’s stock plummeted 14% yesterday due to concerns over subscriber expansion for a WWE Network. The batch was final seen during $14, 52% off a 52-week high.
WWE announced that a “over-the-top” radio network, that launched a small over a year ago, has grown to 1.3 million subscribers. But investors are endangered about a “churn rate”. Specifically, are business shopping a use in a run adult to large events like WrestleMania 31 usually to subsequently dump a network? After all, because compensate $60 to watch Wrestlemania on pay-per-view when we can allow to a WWE Network for $9.99 afterwards drop a use the following month?
But Needham researcher Laura Martin is bullish, telling a AP: “When a Pay Per View series comes out, a series will afterwards be allied to final year. My perspective is that if this series ends adult over 1.5 million combined, that’s a unequivocally good fact for a economics of a business.” To get to 1.5 million sum requires usually 200,000 PPV buys.
That seems plausible. Martin points out that a year ago WWE announced that about 1.1 million people had watched WrestleMania 30. But final year’s sum enclosed 667,000 WWE Network subscribers and tighten to 400,000 people who watched a matches on pay-per-view.
But it should also be forked out that Martin believes shares of WWE are value $20, one-third less than she did a year ago.