Why WWE's Decades of Dominance Could Be Coming To An End
"In business, competition is never as healthy as total domination." Peter Lynch's quote from One Up On Wall Street is a warning that World Wrestling Entertainment (NYSE: WWE) investors should heed. WWE has enjoyed a 20-year reign as the preeminent sports entertainment brand. However, WWE now faces real competition for talent and viewers from upstart rival All Elite Wrestling (AEW), which could spell the end of WWE's dominant stock performance.
Prior to AEW's 2019 founding, WWE talent didn't have many real choices if they were disgruntled or cut from the roster. AEW has roughly one-third the number of stars as WWE, yet AEW is siphoning talent like a vacuum cleaner. Meanwhile, WWE has cut more than 70 individuals this calendar year alone. WWE and AEW's revenues are largely based on fans' interest in the talent on their respective rosters -- so a major shift in talent directly threatens WWE's growth.
(Image source: Getty Images.)
Source Fool.com
