Genius Brands (NASDAQ:GNUS) is in Downtrend: A Good Opportunity?
Genius Brands (NASDAQ:GNUS), a streaming entertainment providers for kids, has significant pipeline of media content for children. Though the stock is not considered a serious contender, there is a possibility of doubling money in this. Many people criticise the firm as traders consider it a penny stock.
Investors need to consider it a business and not just a stock, with serious potential. The sudden shares in company’s shares from $1.30 to $3 may be attributed to a meme-stock phenomenon. However, there is a likelihood of taking stock for possibility of a run-up.
The firm has a 12-month trailing earnings per share of -$2.27, which is an issue for stock below $2. A year back, short seller Hindenburg Research had stated that the company’s stock can become $1.50 Stock in less than a month.
Genius Brands, which announced launch of Kartoon Channel, saw its shares climb up to $12 per share due to 400 million shares of volume. Though the firm’s revenues surged three times, which is positive, the company generated $1,064,263 in first-quarter 2021 revenues. It also reported $143,612,749 (unaudited) in cash and cash equivalents by 2021 end, improvement over $100,456,324 recorded during the year-ago quarter.
The firm is also to join Russell 3000 Index, which could provide a booster to its shares.
Market Reaction:
On Wednesday, GNUS stock slid 5.17% at $1.65 with more than 8.61 million shares, compared to its average volume of 12.43 million shares. The stock had moved within a range of $1.6300 – 1.7500 after opening the trade at $1.73. Over the past 52-week, the stock has been trading within a range of $0.9490 – 3.1200.
