Please ensure Javascript is enabled for purposes of website accessibility

Why Genius Brands Stock Dropped Today

By Joe Tenebruso – Jun 16, 2020 at 6:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors were apparently unimpressed with the company's new content slate.

What happened

Shares of Genius Brands International (GNUS -7.02%) declined by 14.8% on Tuesday after the kids' entertainment company announced the programming lineup for its new digital network.

So what

Genius Brands' free, ad-supported Kartoon Channel! went live on June 15, with "unprecedented distribution reach" and "an unprecedented initial content lineup," according to CEO Andy Heyward. "I am not aware of seeing another channel launch with such a volume of content, across such a broad range of platforms, penetrating virtually the entire United States TV Household universe," Heyward said in a press release.

The service's content lineup includes the animated shorts Baby Einstein, Llama Llama, and The Pig on the Hill, narrated by Pierce Brosnan. It also includes the popular Angry Birds series and the Minecraft-themed show Journey to the End.

However, judging by the nearly 15% plunge of Genius Brands stock on Tuesday, investors were unimpressed.

A stock chart rises sharply and then falls.

Genius Brands stock fell sharply on Tuesday. Image source: Getty Images.

Now what

Genius Brands said that it intends to produce and acquire original animated family films to further strengthen its content lineup. It also has a promising comedy-adventure series starring Arnold Schwarzenegger, Stan Lee's Superhero Kindergarten, slated to launch on Kartoon Channel! in the first quarter of 2021.

However, after the stock's torrid gains so far this year -- shares were up an incredible 1,500% prior to today -- investors appear to be taking some profits off the table.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Genius Brands International, Inc. Stock Quote
Genius Brands International, Inc.
GNUS
$0.60 (-7.02%) $0.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.