WWE Stock Drop

by Jack Windham
November 20, 2008

There's some panic in the air as WWE stocks dropped tremendously this week.

WWE Stock Drop

A lot of eyes are on WWE this week as the company's stock has fallen approximately 25% during the week.

On Monday, WWE stocks were valued at $12.14. On Thursday, the stocks were valued at $9.31 (it dropped as low as $9.24 earlier in the day).

In April of this year, the stocks peaked as high as $19.76.

In October of 2002, WWE stocks once dipped down to $7.10.

With the economy struggling, it was expected that stocks would decline. However, the severity of the drop is still a cause for concerns.

While the creativity level in WWE certainly isn't very high right now, that alone was not the reason why the stocks are dropping.

Sky Isn't Falling

For the record, WWE isn't about to go out of business anytime soon. The company is still making money.

Just on the latest tour, the company was able to generate over $10 million in revenue by doing shows throughout Europe.

While their shows here in the United States haven't been as profitable as they used to be, they're still making money on a weekly basis.

Television ratings have declined for WWE, but they're still high enough to keep the advertisers paying.

WWE will continue to churn and attempt to expand their business.

The company will still do weekly television shows, travel the country to do house shows, and put on pay per views.

Cost Cutting

While the company isn't in danger of going out of business, several wrestlers, though, are in danger of losing their jobs.

Linda McMahon, who is the CEO of WWE, publicly stated that some cost cutting measures will need to be taken.

She stated that she wanted the company to cut approximately $20 million in costs.

That likely means that several of the lower level wrestlers will be let go.

It might even mean that one of the higher paid wrestlers will be let go as well.

Of course, a lot of the cost cutting measures are going to be things that the majority of the fans will never see or hear about.

Closing Thoughts

There's not too may companies out there that aren't effected by the weak economy right now. With WWE being an entertainment company, their stocks were bound to drop.