Why CuriosityStream Stock Fell 16% Last Month

Shares of Curiosity Stream (NASDAQ: CURI) fell 15.7% in September 2021, according to data from S&P Global Market Intelligence. The online publisher of documentaries and tutorial videos actually had nothing but good news to share last month, but the stock was still dragged down by a market-wide retreat from stocks with a high-risk profile.

CuriosityStream falls in the category of risky stocks due to its lack of bottom-line profits and laser-like focus on promoting revenue growth in the long run. The company posted a net loss of $1.77 per share over the last four quarters alongside $48.7 million of negative free cash flows. Top-line revenues raced 27% higher in the second quarter, compared to the year-ago period, but management is reinvesting every spare penny of incoming cash into additional growth-promoting ideas.

In early September, for example, CuriosityStream invested $6 million in the creator-owned streaming video service Nebula. The two companies have been working together for years. With a 12% ownership stake in Nebula, CuriosityStream stands to benefit as the smaller edutainment publisher evolves.

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Source Fool.com