Wall Street Bets has deemed WWE's stock "low risk, high reward", resulting in its price hitting a 12-month high on Wednesday.
WWE currently appears to be doing all that it can to save money. The "budget cuts" excuse issued to talent for the recently released Superstars would certainly suggest that's the case anyway. Which is why the unexpected boost of the company's stock price will have been a very welcome surprise to Vince McMahon and WWE shareholders this past Wednesday.
Between the start of the day and the end of trading on Wednesday, WWE's stock had increased by 11%, finishing the day at $64.48 per share. At one point during the same day, it hit a high of $70.72, the highest WWE shares have been for the past 12 months. Unsurprising as despite the Peacock deal happening during that time, the pandemic has had a negative effect on WWE's stock.
The WWE shareholder with the most to be happy about at close of trade on Wednesday was Vince McMahon. According to Media Referee, McMahon's valuation increased by $300 million in the space of one day. That's quite the chunk of change and a welcome boost to his net worth after the publication of this year's Forbes Rich List saw the WWE boss slip hundreds of places in the rankings.
This wasn't a completely random occurrence, nor was it the fault of WWE. The boost in WWE's stock price was caused by a discussion on what has become the most widely talked about subreddit of 2021, Wall Street Bets. A post on the board described WWE's stock as being "low risk, high reward". As more people upvoted the post, more of them bought WWE stock. That boosted the company's stock price, and here we are.
Wall Street Bets garnered serious mainstream attention earlier this year when it encouraged its members to invest in GameStop stock. McMahon and WWE can only dream of the kind of boost the video game retailer enjoyed off the back of it. GameStop shares started that fateful week at $3.25, only to be worth $469.42 just two days later.