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ANALYSIS: Inside WWE’s Crazy 4X Growth

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WWE and CEO Vince McMahon keep racking up W’s while piledriving Wall Street with a vengeance.

Of course, as you WealthLABBERs know, [WWE]’s been crushing it on the stock exchange, quadrupling in value over the past year. The stock’s currently trading at $80.92, good for a $6.27B market value.

Just for some context: That’s a 3.7X vs. their $1.7B market cap average over the past five years—and a whopping 8.6X above their five-year low of $728.39M.

So why’s the stock’s so high, #WealthGANG? Let’s take a look.

Record Q2 growth

In Q2, WWE reported revenue of $281.6M—a 31% year-over-year jump and 18% above analyst estimates ($239.5M). WWE’s paid subscribers rose 10% to 1.8M, which were in line with earlier projections.

On the digital side, WWE’s digital video views rose 58% in Q2. The total consumption, in terms of digital content, rose 71% to 509M hours, showing a healthy appetite for bodyslams and suplexes.

Crazy lucrative TV deals…

What really helped send the stock surging was McMahon’s ability to score lucrative TV deals with Fox and Comcast/NBC UniversalAccording to US News, the new deals came out to 3.6 times the value of WWE’s previous TV deal for WWE’s weekly shows “Monday Night Raw” and “SmackDown Live.”

In other words. The wrestling franchise will increase TV revenues from $270M to over $600M. Just let that simmer for a bit…

Female wrestling viewers?!

WWE’s traditionally focused on male wrestlers, skewing to their male-dominated audience. But that looks like it could change.

Led by former UFC superstar and current WWE Women’s champ Ronda Rousey, the company is staging its first-ever PPV this year in an ambitious attempt to broaden their female audience base.

This event will include over 50 female wrestlers from the “Raw” and “SmackDown” franchises.

Can they keep it up in Q3?

If you ask Wall Street analysts? Then the answer is yes. The suits down at the Street say that these deals will trigger long-term revenue, earnings, and free cash flow growth for WWE.

Specifically, as things stand now, the company will raise its OIBDA (operating income before depreciation and amortization) from $150M to between $160M and $170M for 2018.

For Q3, WWE has an estimated subscriber count of 1.67M with adjusted OIBDA between $30-34M. Not too shabby for a family business. Let’s give a three-count to good ol’ Vinnie Mac, shall we?

Mr. McMahon, FTW. Credit: WWE, Facebook.

Money

3 Ways To Invest From Your Smartphone For Under $5

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The numbers say 80% of millennials don’t invest in stocks.

Reason? Half say they don’t have money, one-third says it’s too early and another third says they don’t know how.

In addition to that, there’s demographic gap. “The average age of a financial advisor is 55,” said Douglas Boneparth, a New York City-based financial planner. “There are more financial advisors over the age of 70 than there are under 30.”

Despite these beliefs, you don’t really need much money, nor experience, to get started. (Just look at our fearless co-founder Odunayo Eweniyi and what she’s pulled off here)

Be that as it may, here are three ways to get started for $5 or less.

1. Stash

Image result for stash app

What: A micro-investment app (iOS and Android) with over 30 ETFs according to industry, sector and risk tolerance.

How it works: Download the app and choose your investment.

Minimum investment: $5

Cost: Fees range from $1 a month for accounts under $5,000 to 0.25% a year.

“We help people who don’t have a lot save money on a weekly basis,” CEO and co-founder Brandon Krieg said in one interview. “Stashers look like America, they look like people you meet every day: they are nurses and teachers and Uber and Lyft drivers.”

2. Acorns

 

What: iOS and Android app.

How it works: Download the app and choose one of six index funds. When you buy, say a cup of coffee for $1.75, it rounds up the change to $2 and deposits the difference.

Minimum investment: $5

Cost: Just like Stash, fees range from $1 a month for accounts under $5,000 to 0.25% a year.

“We’re not trying to preach austerity to the client, because that’s a bummer,” CMO Manning Field says. “Some people will say, ‘Don’t have the cup of coffee.’ We’ll tell you to have the cup of coffee and invest along the way.”

3. Robinhood

What: A commission-free investment app (iOS and Android).

How it works: Download and start buying stocks.

Minimum investment: Whatever stock you want to buy.

Cost: Free.

And by the way, if you want to get a fast start on real estate, here’s Forbes’ list of nine REITs with yields between 8% and 10%.

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Money

CHART: How Blockchain Powers Bitcoin

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Blockchain, Bitcoin. Bitcoin, blockchain.

The two terms go hand in hand—and have become almost ubiquitous with this year’s insane rise (and fall) of Bitcoin.

But what does it all really mean? How does it come together? In this week’s chart, our friends at CB Insights break down exactly how blockchain powers Bitcoin.

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Money

VIDEO: Shark Tank’s Mr. Wonderful Demonstrates Compound Interest

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How young should your children be when you start teaching them about money? How should I teach my children about money?

The key to children and money is explaining what it is to them early in life. Shark Tank’s Mr. Wonderful, Kevin O’Leary, answers all these questions with this tip on explaining compound interest to your kids.

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