Thu. Nov 14th, 2019

WWE’s stock heads for another 6-day win streak after deal to move ‘NXT’ to USA Network

1 min read

Shares of World Wrestling Entertainment Inc.

WWE, +4.25%

rallied 3.0% in midday trading Tuesday, to put them on track to post another six-session win streak, after the media and entertainment company said it reached an “agreement in principle” to air its weekly “NXT” show live on USA Network, which is owned by Comcast Corp.

CMCSA, +0.86%

subsidiary NBCUniversal. The show is expected to air on Wednesday nights at 8 p.m. (7 p.m. Central) starting Sept. 18. “On its face the news is a positive, especially if the company is able to sell ‘NXT’ at rates similar to its flagship ‘Raw’ and ‘SmackDown’ programs,” wrote J.P. Morgan analyst David Karnovsky in a note to clients. Based on viewership and prices paid for “Raw” and “SmackDown,” Karnovsky estimates “NXT” could generate about $70 million a year in revenue. He affirmed the overweight rating he’s had on the stock since November, and kept his price target at $95. The company is headed for the sixth win streak of at least six sessions so far this year, with the longest streak being seven sessions. That compares with just three six-session losing streaks year to date. Still, the stock has lost 0.8% year to date, while the Dow Jones Industrial Average

DJIA, -0.15%

has gained 12%.

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