Why WWE Shares Keep Rising Despite Falling TV Ratings

Two combatants enter the ring. In one corner stands old school, in the other, new school.

Old school: WWE’s value is being diminished by severely declining television ratings for WWE Raw and SmackDown.

New school: WWE’s new business model is working as the WWE Network, which launched in February, 2014, continues to gain subscribers and is now among the top five over-the-top streaming services.

New school is kicking old school’s but: This year shares of WWE are up 41% versus gains of 8% for the NASDAQ and 1% for the S&P 500.

It’s a lopsided match but old school has not yet been pinned.

The next big thing, I believe, for new school is going to be virtual reality. Want to hook up with some of your WWE fans at Wrestlemania 32 at AT&T T +0.00% Stadium in Arlington, Texas but can’t get tickets or don’t have the time to travel? No problem, put one of these on and it will feel almost like you’re there.

Old school gets pinned by new school.

source: forbes.com