Last week the company lost over a quarter of its $1.52 billion market value.
"WWE is facing multiple challenging factors, including underwhelming subscription figures for their WWE network, in addition to a multi-year negative earnings trend, suggesting that the firms' intrinsic value is materially lower than the current stock price," said Lemelson Capital Chief Investment Officer Emmanuel Lemelson, USA Today reported.
The WWE is working to reach their goal of having one million people sign up for the WWE Network, a $9.99 per month subscription for its online video streaming service, by the end of the year.
So far, the sports entertainment company has 667,000 sign ups.
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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."