WWE Stock Surges To 52-Week High Thanks To Reddit

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.