WWE's stock took another massive tumble.
When the stock market closed on the afternoon of March 12, the company's stock price finished at $32.38 per share, down 16.11 percent from when WWE's stock closed at $38.60 per share on March 11. This is the lowest the stock has ever been since January 12, 2018 when it sat at $32.18 per share.
WWE, as well as the world of pro wrestling and sports, has been rocked by the coronavirus outbreak, putting WrestleMania 36 at risk of being canceled or postponed. Although no decision has been made in regards to the show's status, with it still currently taking place on April 5 at Raymond James Stadium in Tampa.
Even if WrestleMania moves forward, the March 13 edition of SmackDown has already been affected with the show now taking place at the WWE Performance Center instead of Detroit, Michigan. Several wrestling promotions around the world have either postponed and canceled shows with more events potentially being affected in the coming days and weeks.
WWE then released a statement saying that the company's finances could be impacted by the coronavirus and has withdrawn any previously-mentioned projections and guidance for 2020 due to the uncertainty of the coronavirus' long-term effect business-wise.
STAMFORD, Conn.--(BUSINESS WIRE)-- WWE (NYSE: WWE) today communicated perspective regarding the potential impact of COVID-19 on the Company’s financial performance.
WWE has substantial financial resources, both available cash and debt capacity, which currently total more than $0.5 billion, to manage the challenges ahead. The fundamentals of the Company’s business remain strong reflecting the passion of WWE’s fans and the quality of its content. Management continues to believe the Company is well positioned to take full advantage of the changing media landscape and increasing value of live sports rights over the longer term.
The health and safety of WWE’s fans, performers and employees are the Company’s top priorities and management is monitoring the situation closely domestically and internationally.
The potential impact of COVID-19, and corresponding changes in the way WWE operates, may adversely impact the Company’s business including, but not limited to, its live event ticket sales and the sale of merchandise at those events. It should be noted that the Company may be directed to cancel, postpone or relocate certain upcoming events and the number of these changes is unknown at this time. The Company is currently unable to quantify the potential financial impact of COVID-19, but the financial impact to the Company may be material. Accordingly, the Company is withdrawing its previously announced first quarter and full year 2020 guidance due to the increased uncertainty of the financial impact of COVID-19 to the Company.
It's been a hard year for WWE's stock. In January, after the departure of Co-Presidents George Barrios and Michelle Wilson, the stock dropped by as much as 27 percent. It then took a further drop, nearly 20 percent, after the 2019 fourth quarter earnings report was revealed in February.