Entertainment company Genius Brands (NASDAQ:GNUS) was a huge winner last year but flew under the radar for the most part. GNUS stock is up more than 400% in the past 12 months.
As CEO Andy Heyward puts it, the company is currently in investing mode, revenues and earnings are secondary for now. With a substantial cash balance and zero debt, the company is investing heavily in an exciting lineup of shows and other content that are sure to attract subscribers.
GNUS stock has been on a bullish run for the past three months. It has climbed primarily on the announcement of new content updates and the fact that it has expanded its streaming platform.
Additionally, Genius has partnered with entertainment giants such as Marvel and several big names in show business.
With that being said, let’s dive a little deeper into Genius Entertainments’ story.
Impressive Content Lineup
It is imperative for entertainment platforms to have strong content for their customer base. Genius Brands has done an incredible job of producing compelling content for its audience and fostering partnerships with some of the most known faces in media.
One of the company’s most talked-about shows is Stan Lee’s Superhero Kindergarten, which will debut in late April. It features Arnold Schwarzenegger, who is also one of the key figures of the company’s Kartoon Channel.
Additionally, the company has secured likeness rights to Stan Lee from Marvel. Stan Lee is arguably one of the most influential names in the comic book and media industry. Also, an animated comedy show called Shaq’s Garage is in development, starring NBA great Shaquille O’Neal
Genius Brands also announced the expansion of Kartoon Channel, with a 24-hour, ad-supported service. Moreover, it will be producing a show around one of the most talked-about video games in recent times in Roblox to the channel.
The acquisition of ChizComm could create a lot of synergy for the company. The toy and gaming content specialist could help monetize the content flowing across various company channels.
The Bottom Line on GNUS Stock
Genius Brand’s focus at this time revolves around expanding its content offerings and managing its finances wisely. The company’s revenue streams have been variable so far but should stabilize with its media portfolio diversification. Moreover, its ChizComm deal should further strengthen its top line by creating new and recurring revenue streams.
One of the most impressive aspects of the company is its financial health. It has effectively cleaned up its debt through various stock sales and debt to stock conversions.
Genius Brands has roughly $140 million in cash and zero debt at this time. Moreover, with 40 million warrants, it could have another $100 million in cash. Such a strong foundation allows it to go full steam ahead with its plans without harboring much risk.
Genius Brands has an incredible lineup of shows running at this time, with even more exciting ones in the pipeline. Moreover, its ChizComm acquisition highlights its plans to create new revenue sources, including merchandise sales, video game sales, and others.
Its financial management is impressive, and with its hefty cash balance, it will continue to expand its content lineup. Therefore, there are many positives with GNUS stock at this time, and you should seriously consider scooping it up at its current price.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.