TKO stock dips after WWE “WrestleMania”, but buying value remains strong

• WWE, part of TKO Group Holdings (NYSE:TKO), drew the curtain on its biggest weekend show of the year, WrestleMania and now traders are looking closer in the aftermath
• During WrestleMania weekend, WWE announced its acquisition of the leading Mexican lucha libre promotion AAA, which could open new revenue streams and enhance WWE’s global influence
• Analysts maintain a strong buy consensus, with a 12-month price target averaging US$153.21
• TKO Group Holdings stock (NYSE:TKO) opened trading at US$149.39

WWE, part of TKO Group Holdings (NYSE:TKO), drew the curtain on its biggest weekend show of the year, WrestleMania and now traders are looking closer in the aftermath.

Held at Allegiant Stadium in Paradise, Nevada, “the showcase of the immortals” attracted more than 124,000 attendees across two nights this year, showing off WWE’s significant market presence and fan engagement.

Stock performance overview

As of April 21st, 2025, TKO Group Holdings’ stock is trading at US$145.38, reflecting a 2.57 per cent decrease from the previous close of US$149.22. Despite this dip, the stock has shown resilience, with a 52-week high of US$179.09 and a low of US$94.32. Analysts maintain a strong buy consensus, with a 12-month price target averaging US$153.21.

WrestleMania highlights and business moves

Highlights of the show include John Cena winning a record-setting 17th company championship in the final WrestleMania match of his career, UFC owner Dana White getting booed by the crowd twice, and “Stone Cold” Steve Austin crashing his ATV into the crowd barrier, knocking over a fan before announcing the event’s attendance (also before drinking multiple beers.)

During WrestleMania weekend, WWE announced its acquisition of the leading Mexican lucha libre promotion AAA in partnership with Mexico-based sports and entertainment holding company, Fillip. This move is expected to expand WWE’s footprint and influence in Latin America, where pro wrestling, or lucha libre, is embraced as a whole unique culture of its own.

Cross-promotion and licensing agreements

WrestleMania also featured extensive cross-promotion, reflecting TKO’s diversified marketing strategy:

• Advertising on the mat: Promoted the upcoming “Fatal Fury: City of the Wolves” game.
• Wrestler costumes: Featured advertisements for “Clash of Clans” and “Doom: The Dark Ages” games, not to mention WWE’s own video game.
• WWE Women’s Champion Tiffany Stratton: Made a memorable entrance from a “Barbie” box, highlighting TKO’s multi-year extension of its global licensing agreement with Mattel (NASDAQ:MAT).

These promotional activities underscore TKO’s commitment to leveraging WWE’s brand for broader commercial opportunities, potentially boosting merchandise sales and licensing revenue.

Investor implications

Investors should consider several factors when evaluating TKO Group Holdings:

1. Acquisitions: The acquisition of AAA could open new revenue streams and enhance WWE’s global presence.
2. Cross-promotion: Marketing partnerships could drive brand visibility and consumer engagement, unless fans reject the advertising live in-person.
3. Stock serformance: Despite recent fluctuations, analysts remain optimistic about TKO’s long-term growth prospects.

Investors can expect to find out more when TKO releases its Q1 2025 financial results on Monday, May 5th, 2025, after the market closes.

The three-count

TKO Group Holdings continues to show Jacob Fatu-level agility through acquisitions and marketing efforts. As WWE capitalizes on its flagship events and expands its global reach, investors should remain attentive to these developments and their potential impact on TKO’s stock performance.

WWE is an integrated media organization television programming, premium live events, digital media, and publishing platforms. Its main focus is on professional wrestling, and it broadcasts to more than 1 billion homes worldwide in 25 languages through distribution partners including NBCUniversal, Fox Sports, BT Sport, and Sony India. WWE was a publicly traded company on the NYSE since October 1999. TKO also owns UFC, one the world’s premier mixed martial arts organizations.

TKO Group Holdings stock (NYSE:TKO) opened trading down 0.66 per cent at US$149.39. Since the year began, when WWE moved its content to Netflix (NASDAQ:NFLX) for many markets, its stock has climbed 3.00 per cent. Since this time last year, its stock has risen 53.24 per cent.)

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(Top image via Reddit.)