Death, Taxes, and WWE Stock

Not to get all spoilery on last night's Raw, but sometimes some things are just too big to sit on for a week. Yes, we now have a new owner of Monday Night Raw! Donald Trump sold it to rival wrestling promoter Vince McMahon last night. The King is dead! Long live the king!

"We're leaders-two kings!!!"

Still, WWE is a publicly traded company, and as such, has responsibilities to its share holders. Thus, who cares who the owner is as long as our bottom line (cause Stone Cold said so!) is in the black? Let's take a look at the last ten years of WWE's portfolio.

Just like that.

As you can see, WWE stock opened it's first week rather strong, with $24.00 being the price for just a little of that Smackdown action. True, it closed it's first month down $3 from that initial opening, but $21 a share times a few thousand is a pretty spicy meatball! Also, this was the month that John Carpenter (not of this fame) became the first millionaire in Who Wants to be a Millionaire? history. Obviously America was following him for financial advice at the time.

Thank God we're here to translate all these complicated algorithms for you.

This is the financial chart from the time WWE announced their purchase of WCW to the end of the "WCW Invasion" angle. A year and a half later and the stock has dropped six dollars. Still, it remains pretty consistent the entire time, which should not be a good thing due to the angle of all angles they should have been running. Of course, that logic is pretty sound, since the stock went up after the purchase, only to return to its old neighborhood once the public saw that it was failing.

It's like every time this happens the stock goes down

Oh those wacky wrestlers! What a bunch of jokers! Yup, remember when Mr. McMahon "died" in that limo explosion? Yes, when that happened WWE Corporate issued this press release. All in a days work for a wrestling show, right? Except there was one small problem; Vince McMahon is the CEO of a Fortune 500 company. When the head of the company dies people tend to lose faith and begin to jump ship. As exhibited by the above numbers. Thankfully, something else came along to distract buyers from these shenanigans.

Ooo..some good news!

Right. That unpleasantness. What's really astounding is how once the mass media went full on Chris Benoit coverage WWE stock dramatically rose. Then as the craziness died down, the stock dropped below its starting point of the time around the tragedy. Hmm, we guess there is no such thing as bad publicity...

Financial genius our ass

Finally, here are the daily numbers of Donald Trump's crazy week as owner of Raw. Yup, a dramatic decrease. Almost a full point. Could it possibly be because of this? Once again, a crazy wrestling stunt is leading the government to get involved because, hey, we're dealing with people's money here.

Still, most important in all of this is that Vince McMahon bought back Raw. And for the low, low price of double an "offer I couldn't refuse," as he said last week. All for a company that netted -$235,000 last night.

WWE stock! The smartest buy you can make!