Connect with us

Money

ANALYSIS: Inside WWE’s Crazy 4X Growth

Published

on

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

CNBC: Here’s Why WeWork Wants To Go Public

Published

on

News broke recently that WeWork’s going public in September. In this video, CNBC breaks down why they’re going public.

Before you watch, though, here’s some context.

WeWork’s recent S-1 filing — the paperwork you file with the SEC right before you go public — had the entire internet up in arms, including ourselves, trying to decode how the heck WeWork justifies its insane valuation.

Related: Inside WeWork’s $20B Valuation: Is It Really Worth It?

Considering, ya know, IWG, a direct competitor, has nearly double the revenue, five times the members, is $2.5B ahead on the bottom line and…well, you can sort of see where this is going.

Despite earning an insane $47B valuation this year, it’s bleeding dough. Yes, WeWork grossed $1.8B in 2018…but it also lost $1.9B.

Be that as it may, WeWork is going public this year (via parent company “The We Company”), the latest in a string of high-profile tech IPOs in 2019.

And speaking of tech. Despite numerous “tech” mentions in the S-1, critics are claiming WeWork is little more than a real estate company.

As far as the We losses go, CFO Artie Minson told CNBC that investors need not worry about those grim financials, but instead to look at WeWork’s losses as “investments” that will lead to greater cash flow. (Which is very possible.)

And even if short-term losses eventually unearth long-term cash flows, will they be enough to justify its lofty valuation…and even loftier ambitions?

While we’re waiting for time to tell on WeWork’s future, if you’re looking to raise your startup game right now, go check out our content partner More Labs’ brand-new drink Aqua+. (Yes, the same More Labs behind this drink that broke the internet.) 

Continue Reading

Money

Video: Compound Interest, Explained

Published

on

A UPS worker never made more than $14,000 a year but retired with $70 million. How? Compound interest. Here’s how it works, courtesy of Investopedia.

 

Continue Reading

Money

3 Ways To Invest From Your Smartphone For Under $5

Published

on

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%.

Continue Reading

Trending