Weakening demand for Sphere Entertainment's The Wizard of Oz show is pulling back the curtain on Wall Street's concerns about the company's expansion.

Shares of Sphere Entertainment fell 11% to $114.56 on Monday, on pace for their largest one-day percent decrease since April 3, 2025, according to Dow Jones Market Data. The stock is up 21% this year, but down 35% from its all-time closing high of $176.38 set on Aug. 13.

Craig-Hallum analysts downgraded Sphere Entertainment stock to a Hold from a Buy and lowered their share price target to $132 from $170. Analysts cited "overly bullish" Wall Street estimates, "faster-than-expected softening" in demand for The Wizard of Oz, and uncertainty surrounding its Maryland expansion, which they said has "more questions than answers."

Ticket sales for Sphere Entertainment's fiscal third quarter are tracking below Wall Street's projections, the analysts wrote. Recent sales figures suggested an updated version of The Wizard of Oz, released Sept. 25, hasn't "significantly improved demand trends," they added.

Sphere Entertainment has yet to publish dates for The Rocky Horror Picture Show or From the Edge, potentially leaving the company with a two-quarter-long content gap, analysts said.

The company announced plans in January for a 6,000-seat sphere at National Harbor, Maryland, which would be its second U.S. location after Las Vegas. Sphere Entertainment described the project as costing more than $1 billion, but Craig-Hallum analysts pointed to estimates of roughly $1.4 billion.

"It's been eight months since National Harbor was announced and at best, we're beginning to think it was a premature announcement," analysts said.