After shedding more than 20% of their value on Thursday, shares of Genius Brands International (NASDAQ:GNUS) rebounded on Friday. By the close of trading, Genius Brands' stock was up 20.6% after surging as much as 39% earlier in the day.
The sharp upward move in Genius Brands' stock may have been driven by a press release that the kids' entertainment company issued on Friday touting the upcoming launch of its new Kartoon Channel! The ad-supported digital network is scheduled to go live on Monday, June 15. It will be "100% free" and "available to all," according to CEO Andy Heyward.
"We serve a very special audience and our role is not just to entertain, but whenever possible to enrich the young viewers with programs from which they can come away smarter," Heyward said.
However, there wasn't much information in Friday's press release that wasn't already disclosed in previous releases and shareholder letters penned by Heyward in recent weeks.
Even as the bulls once again take a victory lap, there remains just as many reasons to sell Genius Brands' stock as there are to buy it. The company is unprofitable and doesn't yet have much revenue to speak of. And it hasn't yet disclosed the economics of its much-hyped Kartoon Channel!, so it's difficult for investors to judge just how much of an impact it can have on the company's future profits. For these reasons, Genius Brands remains a high-risk stock.