World Wrestling Entertainment hasn’t given investors the show they’ve hoped to see for quite a while. The company hasn’t been completely without success, as its annual WrestleMania event grossed a record $8.9 million last year. Yet growth has eluded the company, and its recent revenue contraction reflects how its attempts to jump-start its business haven’t produced results.
The company hasn’t given up on its growth efforts. It started the television series WWE Main Event last summer on the ION network, complementing its deals with Comcast Corporation (NASDAQ:CMCSA) to broadcast Raw and Smackdown. It also launched a show on the CW network oriented toward kids, Saturday Morning Slam, in an agreement with CBS Corporation (NYSE:CBS) and Time Warner Inc. (NYSE:TWX). With Comcast, CBS, and Time Warner all fighting to find valuable content to show on their growing stable of networks, their willingness to make deals with WWE is a sign of their confidence in the entertainment company.
Perhaps the most interesting initiative World Wrestling Entertainment has in the pipeline is its proposed WWE Network. The dedicated cable network would show 24-hour programming from the company’s huge library of content, which includes shows from as far back as the 1990s.
For WWE to improve, it needs to show that it can fend off growing competition from the Ultimate Fighting Championship series, which has grown immensely in popularity. Otherwise, WWE may never get any closer to perfection.
No stock is a sure thing, but some stocks are a lot closer to perfect than others. By looking for the perfect stock, you’ll go a long way toward improving your investing prowess and learning how to separate out the best investments from the rest.
The article Has World Wrestling Entertainment Become the Perfect Stock? originally appeared on Fool.com and is written by Dan Caplinger.
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