Genius Group Is a Brilliant Idea That May Have Launched Late

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GNS stock - Genius Group Is a Brilliant Idea That May Have Launched Late

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From the cynical to the reasonable, myriad factors bolster the bullish argument of educational technology (edtech) specialist Genius Group Limited (NYSEAMERICAN:GNS). Providing developmental curriculums for every age group, Genius is geared toward entrepreneurialism, fostering learning with a practical edge. Considering the growing integration of digitalization in the workforce, GNS stock is, on paper, a viable long-term investment.

Unfortunately, the narrative and the reality are not wholly aligned. Since its initial public offering (IPO) — which was met with resounding support on opening day — GNS stock is down a staggering 81%. It would appear that insiders were only hopeful for a public market debut to simply dump their holdings onto an unsuspecting public.

To be fair, the initial offering price of GNS stock was $6. Against that level, the erosion of value isn’t as severe. Still, that would be little comfort to those that bought at the peak of its IPO pop. Nevertheless, it is possible that Genius could claw its way back up.

One of the worrying news items that captured America’s attention is the collective burnout among teachers. Per Cathy Donovan, director of elementary human resources for the Olathe, Kansas school system, “We have seen a record number of teachers wanting to be released from their contract during the school year.” That’s incredibly problematic for the school system, though a possible cynical boost for GNS stock.

Essentially, Genius provides a platform for talented teachers and experts to share their knowledge base to students, all while enjoying the conveniences of edtech — particularly learn-from-home protocols. It gives more time and less pressure for teachers, allowing them to be effective.

So, why hasn’t this framework turned GNS’ frown upside down? Likely, the IPO launched at the wrong time. In a period of geopolitical turmoil, global recession fears and soaring inflation, households everywhere are looking to make cuts. That’s going to hurt the volume game — and I’m not entirely sure if Genius is a powerful enough brand to play the per-capita premium profitability angle.

On the date of publication, Josh Enomoto 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.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/gns-stock-brilliant-idea-launched-too-late/.

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