NEW YORK (TheStreet) -- World Wrestling Entertainment (WWE) declined for a second straight day on Tuesday as the stock continued to suffer from the company's announcement that approximately 667,000 fans had signed up for the WWE Network, the company's all-hours streaming service.
WWE has said it hopes to reach 1 million subscribers by the end of the year. It debuted the WWE Network at $9.99 a month on Feb. 24 and has already gotten two-thirds of the way towards its goal in approximately six weeks. But some investors seemingly found the number underwhelming and the plunge began on Monday, the day the company announced the number and the day after WrestleMania 30, the 30th installment of the company's signature event.
WrestleMania 30 was the first pay-per-view event to stream live on the WWE Network, which offers each of the company's pay-per-view events as part of the monthly fee. Despite the usual surge in viewership for WrestleMania events, the streaming service suffered few reported problems during the nearly six hours of coverage on Sunday.
The stock closed at $22.21, down 7.07% or $1.69 from its previous close of $23.90. The stock has fallen more than 20% in the last two days.
TheStreet Ratings team rates WORLD WRESTLING ENTMT INC as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate WORLD WRESTLING ENTMT INC (WWE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."