The Street is reporting WWE stock is down a whopping 7.31% today after Nathaniel August, the founder of the hedge fund Mangrove Partners, argued on CNBC that investors should short sell their holdings in WWE.

August told CNBC that WWE would have to "double its subscriber number to the Network to justify its valuation," which his firm doesn't believe will be achieved anytime soon.

"The company has roughly a billion dollar market cap and they've launched an over the top network and pretty much all their profitability going forward is dependent on the OTT network and right now based on the number of subscribers that they have, they'll earn nothing at a corporate level and they need to double the number of subscribers just to justify their current valuation and we think that that's never going to happen.... So they launched it in April at WrestleMania and at the time they launched with 670,000 subs and at the end of the second quarter they only managed to add an additional 30,000 subs and as we've done scuttlebutt based research in how people are reacting to the network, we think people are really unhappy and that the number of additions is going to prove very disappointing."