Yesterday (June 8), a post in r/wallstreetbets – the subreddit of online investors credited with/blamed for the meme stock phenomena that’s caused stocks like Gamestop, AMC & Blackberry to take off this year – advocated for buying WWE shares.
Even when I was a business dude, finance wasn’t my thing, so the links above are going to be more helpful explainers on the whole #memestonk thing than anything I can give you. In general though, the WallStreetBets crew is interested in screwing over hedge funds and other short sellers, or those who’ve bet that its price will go down. They also want to make lots of money, of course. Redditor pennyether argues WWE is a good play both because a lot of investors are short on the stock, and because factors like the company’s impending return to producing live shows and rumors of a sale make it undervalued.
Their post led to big gains for WWE before the market even opened today, as the price went up 10% overnight to $64.19. By mid-morning, it had hit it’s 52 week high of $70 per share. It settled back down to about where it started the day, closing at $64.48. It’s up slightly in after-hours trading.
Where do we go from here? Hell if I know, I’m just a former mid-level marketing guy. Investors Business Daily reports the volume of trades was about nine-times more than normal, and Wrestlenomics’ Brandon Thurston said “today’s stock activity is one of the most bizarre things I’ve seen since I’ve been following WWE business.”
So buckle up.