Shares of Genius Brands International (NASDAQ:GNUS) have been on a tear this spring thanks to a couple of press releases and announcements. In just a couple of weeks we learned that GNUS signed several streaming deals, toy deal with Mattel, followed by two high profile hires and last, but not least, on Monday June 15 Genius Brands is officially launching Kartoon Channel.
Unlike other subscription services, Kartoon Channel! is an ad-supported service and will be 100% free, making it available to all.CEO of Genius Brands, Andy Heyward
Investors have been betting big time on the cartoon specialist given that it is one of the newest big time players in the booming on-demand movie industry, thanks to its tie-ups with the likes of Amazon and Netflix.
Investors will be looking forward to another fun week that will start with Kartoon Channel launch and Monday marks “make it or brake it” line for many GNUS shareholders. Some shareholders are hoping to see a surge on Monday, but are also fearful that everything can go down the drain. But can the newcomer become one of the leading cartoon streamers? Let’s find out.
A strong streaming pipeline will boost growth
Genius Brands stock has grown at a terrific pace this year thanks to the regular updates from the Company . Looking ahead, streaming segment will continue to remain a major catalyst for the company, as ad-supported video-on-demand revenue is expected to see $56 billion across 138 countries by 2024.
What size is the piece that will GNUS manage to take away from those $56 billion is of course not known, but investors are betting on this gravy train. Investors will be eagerly waiting to see the impact of Kartoon Channel on the company’s growth.
Now, since GNUS stock grew some 1800% year-to-date, big name institutional investors entered the game. For example Heights Capital Management bought more than 7 million shares just a 2 weeks ago and are now holding more than 7% in Genius Brands. They usually invest in emerging growth healthcare and tech companies.
Again, no on knows what the Monday holds. We can see “buy the news, sell the launch” phenomenon taking place or we can finally see a healthy long-awaited growth for Genius Brands. They decided to be the part of the new TV industry and if they do it the right way GNUS stock price might never go back below $10 once it goes above that line.