WWE stock received a big boost on Wednesday, June 9 thanks to the popular subreddit r/wallstreetbeats.
The stock is currently up 11.92%, hitting a 52-week high of $70.41 at 9:40 a.m. ET on Wednesday morning.
The subreddit r/wallstreetbeats, which helped to spike the stock for Gamestop and AMC earlier this year, took an interest in WWE stock, making the case for buying. The post made the following points:
- High SI. 8m shares shorted (~$460m worth). 18% of float.
- Low float. Also, 8m shs (20% of float) is permahedged, see below. SI is thus 22% of float.
- Solid fundamentals, if it matters. $1b rev and growing, even through COVID.
- Live events returning in July.
- Rumors of an acquisition.
- A beloved provider of memes.
- Shorts are just now starting to feel the heat. It'll be hard to cover (low float, low volume)
- Options are cheap as fuck. IV is sitting at 35%.
Brandon Thurston of Wrestlenomics noted that when the stock was up over 16%, the market value of Vince McMahon's ownership (nearly 29 million shares) was almost $300 million more valuable than it was on Tuesday.
Fightful will continue to monitor the story as it unfolds.