Shares of World Wrestling Entertainment (WWE) are down another 13% Monday even though the company announced that it expects to hit its goal of 1 million subscribers by the end of 2014, making it the fastest growing digital subscription service.
This comes on the heels of a sold-out WWE event in News Orleans.
The continued pressure on WWE — down 19% over the past 4 days — appears to be related to concerns about overvaluation. Analysts claim that at 25 times 2015 earnings, the stock remains overvalued, especially since WWE is expected to report a loss of $0.16 per share for Q1 compared to a loss of $0.11 for Q4 2013 and a profit of $0.05 for Q1 2013.
Also, after the stock was driven higher early last month by rumors of a possible take-over, it became vulnerable to profit-taking pressure when the buyout never materialized.
Currently trading at $24.34, the stock is still within its 52-week range of $8.56 to $31.98.