Streaming entertainment provider Genius Brands (NASDAQ:GNUS) is known for its broad selection of family-friendly content. This might not sound too exciting for grown-ups, but traders should know that GNUS stock is anything but boring.
As we’ll see, this stock is capable of spiking without prior warning. On the other hand, if your timing is off, you could end up buying it near the top.
Yet, a moderately sized position could be warranted as Genius expands its pipeline of content for kids — and demonstrates its ability to generate strong revenues.
A Closer Look at GNUS Stock
If you want proof that GNUS stock can build wealth very quickly, it’s not hard to find examples.
One dramatic instance occurred during the summer of 2020. That’s when Genius shares flew from 32 cents in May to as high as the $11 level in June. There are also more examples of it posting huge gains this year — back in January and then again in March.
Here’s where it gets tricky, though. After each of these rallies, the GNUS stock price declined sharply. So, let me emphasize again, timing is of the utmost importance when it comes to this stock.
GNUS closed at $1.91 on Jun 2, 2021. Throughout the first half of the year, the floor has been around $1.50 and the top of the range close to $3. Therefore, there may be a pretty good buying opportunity here for nimble traders, depending on the price at the time of purchase.
Genius and Its ‘Proven Hit Content’
Sometimes writers overuse certain words, like “unprecedented” or “amazing.” (I’m pointing to myself here.) Perhaps we can add “proven” to the list as well. Yet, Genius Brands is 100% right to say that the company is adding proven content to its lineup.
As always, InvestorPlace contributor Chris MacDonald is timely with his reporting. He gave readers the key info on GNUS stock and the company’s recent, massive streaming-content expansion. Specifically, Genius is adding 240 hours of “proven hit content” to its Kartoon Channel! offerings.
Instead of producing all of that content in-house (which would be capital- and labor-intensive), Genius Brands is getting it from companies like WildBrain, Nelvanna, ABC Australia and Zodiak Kids. Plus, the slate of new acquisitions includes some very familiar names, such as “Super Mario Bros., Donkey Kong, Paddington Bear, Madeline, The Wiggles” and more.
Jon Ollwerther — the president of Kartoon Channel! and executive vice president of business development at Genius Brands — seemed to hint at future platform expansion, too. “We are continuing to grow Kartoon Channel! each month, with more and more viewers enjoying what we believe is the very best combination of original, exclusive, and acquired content in the kid’s entertainment industry,” Ollwerther explained.
Triple-Digit Revenue Increase
So, does Genius Brands’ knack for providing premium kids’ content translate into strong revenues? To answer that question, I’ll let the data do the talking.
During the first quarter of 2021, Genius Brands took in roughly $1.1 million in revenues. That’s a year-over-year (YOY) increase of 218%, far more than the approximately $335,000 made in Q1 2020.
And, what about the company’s fiscal position? I’m glad to report that Genius Brands is faring well on that front, too. As of Mar. 31, 2021, Genius Brands reported having $143.6 million in cash and cash equivalents. Moreover, the company reported having “no long-term debt.”
From what I can tell, it seems that the trading community hasn’t fully reacted to all of this great news for GNUS stock. Perhaps they will, sooner or later.
The Bottom Line on GNUS Stock
So, all told, it’s actually not an exaggeration to say that Genius Brands is providing “proven hit content.” Not only is it giving the kids what they want, it’s also giving the adults something to get excited about.
With its new acquisitions — and with triple-digit revenue gains on the books — GNUS stock ought to be much higher.
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On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.