Investors Are Looking at WWE All Wrong
WWE (NYSE: WWE) shares popped nearly 10% after the company reported earnings on July 25. The company beat its earnings guidance, but overall revenue dropped and its streaming network lost subscribers.
None of these metrics matter all that much, however, as WWE investors have nothing to worry about for a little over five years. That's the length of the self-identified "sports entertainment" brand's new television deals with Comcast (NASDAQ: CMCSA) and Fox (NASDAQ: FOX). Those deals essentially double what WWE earns for U.S. television rights, more or less ensuring larger profits for the company.
For investors, however, the real story isn't told by earnings -- it's about where the company's underlying popularity stands in five years when those deals come due.
Quelle Fool.com
