After the release of the Q1 2019 Financial Report, which showed revenue down 3% from this quarter in 2018, the stock market reacted negatively.
WWE stock ended the day at $85.38, a decrease of 13.3% from yesterday’s closing price of $98.50. The company currently has a market value of $6.663 billion, an over $1 billion decline from yesterday’s valuation of $7.687 billion.
According to an article on The Motley Fool, two key factors triggered the decline. Revenue, which was estimated to come in at $199 million, came in at $182.4 million, a 3% decline from last year’s revenue. Increased investment on content also caused an operating loss of $6.8 million, after posting a $21.8 million profit last year.
WWE CEO Vince McMahon blamed superstar absences as the reason for underwhelming numbers. WWE remains optimistic about hitting it’s forecasted revenue of $1 billion by the end of the year, particularly with the upcoming deal with FOX hitting the books this coming October.