WWE In Stranglehold Following Wrestlemania For Second Year In A Row
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
World Wrestling Entertainment, Inc. (NYSE: WWE) 'A' shares were trading lower by $2.15 (14 percent) at $14.37 in Monday's session. The beatdown is taking place despite the company announcing Wrestlemania 31 becoming the highest-grossing event in its history.
Perhaps the Street is more focused on negative subscriber numbers for its WWE Network as opposed to applauding the results from a yearly event.
Related Link: WWE Post-Wrestlemania Conference: A Play-By-Play Recap
After its Q4 beat on February 12, the issue posted a three-day rally that took the issue from its February 11 close of $13.37 to $17.36. However, since the wicked rally took place, it has been mirrored in trading range from $15.41 to $17.91.
Early in Monday's session, it was attempting to reach the upper-end of the range, but fell short only reaching $17.44. Shortly after reaching that elevated level, investors slammed the issue when the conference call began.
The ensuing decline easily violated the lower end of the trading range ($15.41), declining to $13.75 before rebounding to the mid-$14.00 handle. The spike lower took the issue beyond its February 13 low of $14.36 and just ahead of its earnings day low at $13.50.
It should be noted, WWE came under extreme selling pressure last April following its Wrestlemania 30 event, taking the issue from its all-time high in March 2014 of $31.98 to $18.82 by the end of April, then collapsing to $10.55 at the end of May.
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