Why has the WWE stock gone to over $200 per share and is it still a good investment?

You don't have to be a fan of the WWE to be an investor in the company b ut if your a fan why not invest in the WWE  As a long time fan and former investor in the company I recently decided to research the WWE.

WWE by the way stands for WORLD WRESTLING ENTERTAINMENT.

HISTORY OF WWE:

The company has been in the USA since owner Jess McMahon founded the company on January 7th 1953.

The company was handed down to Vince McMahon in 1963 and he built the company to what it is today.

STOCK HISTORY:

The company offered stock to the public on October 19th 1999.

The original stock opened for purchase at $17 per share but rose up to $30 per share.

The company made money mainly from TV, Pay Per Views, Live Events, and merchandise sales.

In 2023 the WWE was sold to the UFC and the stock was renamed TKO on the stock market.

The sale of the stocks to the UFC skyrocketed because of deals with companies like NETFLIX and ESPN and as of today the stock is currently valued above $200.

If you had bought 1000 shares in 1999 and held them till 2023  you would have invested $17,000 dollars and sold them at $200,000 not including dividends earned you would have made $183,000 dollars.

IS THE STOCK STILL A GOOD INVESTMENT:

Today the stock is listed as a STRONG BUY  by annalist saying the stock could reach $230 per share with in the next 12 months.

However there are concerns that TKO may be making long time WWE fans angry with Higher Pay Per View Prices , and increasing WWE monthly fees on ESPN that jumped to $30 per month over Peacock that had offered the same service for $10 per month. Also TKO moved a flagship show called RAW off of the network called USA that was free to watch over to a company called NETFLIX that charges a minimum of $7 per month to watch the show live. 

Also another issue has come up from fans about the Live Events going up in cost and many fans are not even able to afford to go to the live shows. 

The company has also announced a 1 billion dollar stock repurchase program to happen in June of 2026 seeking a 5 to 1 split of the stock. Meaning if you own 1 share you will get 5 shares under this re-purchase program. This will lower the stock price to around $40 to $50 per share based on the projected price hitting $230 per share.

OTHER FACTORS THAT COULD IMPACT THE STOCK:

The most important thing that could make or break this stock is the WWE FANS.F 

This is a fan based company if the fans do not watch the Pay Per Views, watch the Netfix shows  or turn off USA, CW or ESPN or they decide to stop going to events or buying WWE products the company could crash.