WWE stock spikes on sale speculation
WWE's stock surged to a 52-week high on Monday and ended the day up 8%.
Why it matters: Vince McMahon's abrupt retirement as WWE's chief executive has led some to believe the company could be looking for a buyer.
- Over the past 12 months, WWE's stock is up 40%.
The latest: WWE said in a Monday SEC filing that it would revise some of its past financial statements to reflect McMahon's $14.6 million in payments that weren't recorded in the company's accounts.
- McMahon retired amid an investigation into his behavior that included sexual misconduct and hush money payments.
What they're saying: Multiple analysts Monday attributed the stock jump to sale speculation.
- "If you have a company that was created or made into what it is now by one leader, and the leader steps aside … it pretty much will always have [Wall Street] speculating that strategic options will be explored," Cannonball Research analyst Vasily Karasyov wrote in a research note, per the Wall Street Journal.
- "This is a challenging environment with the equities of most of the logical buyers depressed, but there is demand for live event programming, and it is the first time that one could realistically think that WWE could be for sale," Loop Capital analyst Alan Gould wrote in a research note, per Deadline.