If You Invested $1,000 In Genius Brands Stock One Year Ago, Here's How Much You'd Have Now

Investors who have owned stocks in the last year have generally experienced some big gains. In fact, the SPDR S&P 500's SPY total return over the last 12 months is 34.6%. But there is no question some big-name stocks performed better than others along the way.

Genius’ Difficult Road: One company that has been a roller coaster investment in the past year has been children’s entertainment company Genius Brands International Inc GNUS.

Entering 2021, Genius stock had an abysmal long-term track record. In fact, the stock has now lost 74.5% of its overall value in the last five years.

Much of that extreme value destruction in the past decade has come as a result of dilution and multiple reverse stock splits. In fact, Genius’s outstanding share count is up a mind-boggling 7,440% in just the past five years.

In 2019, Genius generated an $11.4 million net loss on $5.9 million in revenue. In 2020, those numbers dropped to a net loss of $401.6 million on just $2.4 million in revenue.

EXCLUSIVE: Genius Brands CEO Talks Growth Accelerated By Stan Lee, Arnold Schwarzenegger, Shaquille O'Neal, Rob Gronkowski

At the beginning of 2020, Genius shares were trading at 30 cents, even after completing a 1-for-4 reverse stock split in late 2016. By the beginning of March, the stock was still trading at 29.7 cents as news of the virus spreading in China prompted concerns about a U.S. pandemic.

On March 12, Genius shares dropped all the way down to 5.2 cents, marking a new split-adjusted all-time low for the stock. Fortunately, Genius shares bounced along with the rest of the market starting in late March.

Genius shares recovered to as high as $11.73 by early June on news that former action star Arnold Schwarzenegger made a significant investment in the company. Genius also launched its “Kartoon Channel!” on several popular streaming platforms.

Genius In 2021, Beyond: Unfortunately for Genius investors, the big headlines have yet to transition to big profits. In July 2020, CEO Andy Heyward said the company would be profitable by the end of the year. Unfortunately, Genius reported another $76.2 million net loss in the most recent quarter.

Genius started 2021 trading back down at $1.36 and has yet to repeat its big 2020 move in 2021. Today, Genius is trading at $1.46.

Genius investors who bought one year ago and held on through the volatility are still underwater on their investment. In fact, $1,000 in Genius stock bought on Aug. 17, 2020, would be worth about $950 today.

Looking ahead, Genius is understandably not on the radar of most Wall Street analysts. However, the one analyst that covers the stock is bullish and has a $4.50 price target, suggesting a 209.2% upside over the next 12 months.

Photo: Courtesy Genius Brands International

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Posted In: Penny StocksEducationSmall CapMoversTrading IdeasGeneralAndy HeywardArnold SchwarzeneggerenterainmentKartoon Channeltv
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