WWE Stock: No Longer Down for the Count
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What are the latest market headlines affecting consumers and investors?
With your money briefing, I'm J.R. Whelan. There was a time when investors in world wrestling entertainment were thrown to the mat. Well, times have changed. We'll get an update on the success of WWE in a moment. First, these money and markets headlines you need to know. Some good news for homebuyers. Home price growth slowed in June for the third straight month. Rising interest rates, along with elevated prices resulting from a lack of inventory, are putting the brakes on price increases after gains had grown significantly faster than both incomes and inflation for most of the last two years. And the price increases appear primarily to be squeezing middle and upper middle class buyers, with the wealthiest Americans continuing to spend more to buy homes.
Toll Brothers saw a 30% increase in profit in the quarter ending July 31st, with customers spending $165,000 on average toward premium customization and design features. And a new federal law going into effect in September will make it easier for families to combat a growing problem of identity fraud of minors. allowing them to make inquiries about credit files in their child's name and freeze a file at no cost. Experts in the data security industry say that children are increasingly targeted by thieves who steal the social security numbers and create fake or so-called synthetic identities, then open credit cards and take out loans or apply for public assistance. The credit reporting company Experian estimates that such identity theft will affect one in four children before they become an adult.
We're joined by Heard on the Street Deputy Editor Spencer Jacob. And shares of World Wrestling Entertainment were seen by many as down for the count just a few years ago. But those who stuck with the likes of wrestlers AJ Styles and Charlotte Flair and Kyle O'Reilly have enjoyed sweet returns. But Spencer, it hasn't been a straight line upward for the stock.
How has home-price growth and buyer behavior changed recently?
No, it hasn't. The company's been public for a while, and they've had some booms and busts, and they're definitely in one of the boom periods right now. I think it could continue. There's some skepticism. It's up 162% so far this year. It's up something like 700% since their last low, which was in early 2015. But they are kind of on the cusp of a very lucrative series of contracts that I think could keep the stock moving higher.
We mentioned some wrestlers you can't really discount, Grand Poobah Vince McMahon, also from WWE.
No, you can't, no. I mean, he's really very closely associated and has very tight control over the company personally. I think he's about 70 years old. There are some younger executives, though, who have pushed some innovations. George Barrios, the chief financial officer, has now joined the board, who is seen as instrumental in cementing this new, much more lucrative media deal that's going to kick in next year.
You know, this new comprehensive content deal put investors at ease, but there was a lot of concern, especially with a standalone TV deal with NBCUniversal.
That's right. So they are in the middle right now of an existing five-year deal that expires next October. And the people were very, very disappointed when they heard the details of it back in 2014. Basically, they thought that they were getting far too little because people were getting very excited at the time about UFC and things like that, other forms of live entertainment. And they had, I guess, unrealistically high expectations or WWE didn't do a very good job negotiating that contract. This time around, it actually split the contract between Fox and its traditional home, which is Universal USA Network, owned by NBCUniversal, and got a much better deal.
You know, it's remarkable that TV ratings have declined for WWE and a lot of other properties as well. But it doesn't really mean that WWE has seen an erosion in its following and, in turn, its revenues. I mean, it has an enormous following online.
Yeah. If you just looked at that, then you would draw some very pessimistic conclusions.
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Chapters
4 chapters
1
What are the latest market headlines affecting consumers and investors?
0:05–2:02
2
How has home-price growth and buyer behavior changed recently?
2:02–5:30
3
What new law helps parents protect children from identity theft?
5:30–8:53
4
Why was WWE stock 'thrown to the mat' and who joins the conversation?
8:53–8:57
Speakers
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