Its catalog of products includes preschool properties such as “Rainbow Rangers” for Nick Jr. and “Llama Llama” for Netflix (NASDAQ: NFLX); toddler property Baby Genius; Warren Buffett’s “Secret Millionaires Club;” and a new property — Stan Lee’s “Superhero Kindergarten.” It also offers a science, technology, engineering and math (STEM)-based series called “Thomas Edison’s Secret Lab.” The company’s channel is available on television and mobile devices through various streaming platforms.
GNUS Stock Price
When considering purchasing GNUS stock, you should take into account that the company’s financial results are rather lacking. GNUS 2nd-quarter sales of $2.34 million is an increase of 318% year-over-year, but even with impressive sales reported the company is unable to capitalize on the growth because of its out-of-control spending. During that same period the company's spending tripled to $9.9 million which ended up causing it to operate at a loss of $7.6 million. And with new intellectual properties (IPs) being developed that loss could increase, which will directly influence stock price.
To bulls, the company has great potential with huge upside if it focuses on the past performance risk of the company missing future gains. Bearish investors, on the other hand, will most likely move into the stock if they see concrete price movements that match the performance claims made by Genius Brands management.
GNUS Stock Forecast
Genius Brands as a whole seems to be an attractive buy given its new intellectual properties with the late Lee and various athletes. Genius Brands CEO Andy Heyward has said the company's Kartoon Channel is akin to a free Netflix account but for children. With these new and upcoming IPs for the company, the stock has great potential.
Heyward also touts that Genius Brands is operating like various other media companies such as The Walt Disney Co. (NYSE: DIS) and ViacomCBS Inc. (NASDAQ: VIAC) among others. Given the company’s operating margins, which have consistently been well under 100%, the stock's current performance doesn’t match the company’s statements as proven by those margin results.
GNUS Stock News
Another reason Genius Brands is worth watching is that the company is set to debut an upcoming series in collaboration with NBA legend Shaquille O’Neal, called “Shaq’s Garage,” which has started production and is set to air during the 2nd quarter of 2022. O'Neal, who is an investor in Genius Brands, is also voicing a character, along with NFL star Rob Gronkowski who was recently named as a producer for the show and also will voice a character.
“Shaq’s Garage” isn’t the only project Genius Brands is working on in collaboration with celebrities. “Superhero Kindergarten,” the program it developed with Lee and Arnold Schwarzenegger, has been seeing an increase in popularity.
Genius Brands reported quarterly revenue of $2.3 million, which represents a 318% increase year-over-year. Not only did revenue increase, the number of unique users of the company’s Kartoon Channel increased 932% year-over-year. With new programs such as those involving O’Neal, one can only assume that viewership will increase even more so than it already has.
How to Buy Genius Brands Stock
You’ve read all this and think you’d like to buy GNUS stock, but you have no idea where to start. If you’ve never purchased a share of stock, you need to create a brokerage account. You can choose from numerous trading platforms that will allow you to open an account, fund your trades and complete your orders.
Follow these simple steps to start:
Step 1: Pick a brokerage.
You may be wondering what a broker is. A broker is a financial service provider who is authorized to buy and sell shares of stock on behalf of retail customers. The broker you choose will determine how much you pay in commissions on every trade, what platform you can use and what type of investments you can buy and sell. Also included are various analysis tools that can help you with your transactions. If you’re unsure of which broker to go with and are lost on where to go, consider looking at some of Benzinga’s favorites below.
Step 2: Decide the number of shares you wish to purchase.
The next step is deciding on how many shares you’d like to buy. A rule of thumb is never to feel pressured into buying more than what you're comfortable spending — this is even more important with your first few trades. While you develop your trading strategy this rule will be helpful. Remember that you can start out with buying a single share and eventually buy more in the future.
If you have a limited amount of money to invest initially, it is possible to start out by buying a fractional share of stock, and your portion will be based on the amount you invested into it. A good broker will allow you to invest fractionally. This is done by placing a limit based on your investment budget and the brokerage platform automatically computes the number of shares you can buy with your current capital.
Step 3: Decide on your order type.
Once you’ve calculated how many shares you’d like to purchase, you must decide which type of order you would like to use to complete your purchase. The choice you make will determine the details of the order, how much you’ll pay per share and when the order will be completed.
Common order types include:
- Market orders: This type of order is executed as soon as possible at the rate that is currently in the market as it executes. This allows your order to be filled quickly, but it can cause you to pay more than anticipated for each share if something happened between time the order was placed and when the order was completed.
- Trailing stop orders: A stop order is executed when a stock rises above its lowest price by a set amount. For example, you state in your order that you’ll buy 10 shares of GNUS stock when the price increases by 6% above the lowest price of the day.
- Limit orders: This order only takes place when a share reaches a specific price or falls below that price. Say you want to buy 100 shares of GNUS stock at a limit price of $5. That means the order will only be fulfilled by the broker if each share falls to $5 or less.
- Stop orders: A stop order only occurs if the price of a stock goes above a certain price. These types of orders can be helpful for various momentum strategies and when a sell wall stops your ability to invest.
- Stop-limit order: This order is a combination of both a stop and limit order. When you place this type of order, you’ll set a lower stop price and a higher limit price, which act as the boundaries on which the purchasing of a share takes place. If the stop price is met then the order switches to a limit order. If the market price rises above the limit price, the broker stops fulfilling your orders.
Step 4: Complete a trade.
When filing a trade request, double check that all the order details are correct. At that point, the broker follows the exact instructions you sent in. If something is incorrect that error falls on you, so another good rule is to always check your order details. If the order goes through properly, you will receive a message verifying it is completed. This will show in your portfolio as well.
Best Online Stock Brokers for GNUS Stock
If you’re researching which online broker to go with when making an investment consider the following listed.
GNUS on Benzinga Pro
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Screenshot captured from Benzinga Pro 9/23/2021
Looking at GNUS stock year-to-date, you can see that during most of the year the stock has taken a downward trending line with a 50-day moving average of 1.54, a day range of 1.38 to 1.43 and a bottom-out price somewhere in between the current range.
Conclusion
You’re probably wondering whether you should buy GNUS stock. The answer to that depends on whether you want to invest in the leisure products market and whether you are comfortable with the trending activity of a decreasing movement in price and the chance that there will be an increase resulting from Genius Brands’ properties making headlines. If you want to look further into the stock, try using Benzinga Pro for a more thorough analysis.
Frequently Asked Questions
Who is the owner of Genius Brands?
Genius Brands Intl is owned by its founder Andy Heyward, Sony Pictures Home Entertainment and 32 Ventures.
Is Genius Brands profitable?
As of the last report for 2020, the company was operating at a $76 million net loss. The company itself isn’t operating at a loss because of a lack of funding; the loss is mainly the result of the company not investing that capital in a profitable manner.
About Ryan Wright
Ryan specializes in SEO copywriting and content creation. He uses the mentioned skills to maintain a blog that showcases his published poetry collections.