Please ensure Javascript is enabled for purposes of website accessibility

Why CuriosityStream Stock Was Down 22% in March

By Jon Quast - Updated Apr 5, 2021 at 10:17AM

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

Its business is doing better than expected, but many growth stocks took a step back.

What happened

Shares of CuriosityStream (CURI 4.07%) were down 22% in March, according to data provided by S&P Global Market Intelligence. The stock was generally flat until late in the month, when it fell following the release of its full-year financial results for 2020. But its business results may not be the best explanation for why the stock fell.

So what

On March 23, CuriosityStream, an educational streaming-video platform, reported earnings for 2020. It generated revenue of $11.4 million in the fourth quarter, which was up 70% year over year. And while its fourth-quarter net loss of $15.7 million was steep, the top-line number exceeded analysts' expectations.

A frustrated person lays his head down on a table with a down stock chart in the background.

Image source: Getty Images.

Moreover, CuriosityStream guided for $71 million in revenue for 2021, up 80% from 2020 and ahead of what Wall Street was expecting. Therefore, it's hard to conclude that the stock fell because its results disappointed investors. To the contrary, it's doing better than expected.

Rather, it seems the stock fell along with many other high-growth stocks. Specifically, many special purpose acquisition company (SPAC) stocks fell toward the end of March, and CuriosityStream is a former SPAC. This seems to more adequately explain the stock's drop.

CURI Chart

CURI data by YCharts.

Now what

For CuriosityStream shareholders, be encouraged that the stock fell because of the market and not some company-specific problem. Volatility is normal for the stock market and can't be avoided. That's why, with investing, we do our best to forecast and envision business results years down the road instead of fixating on the daily (or monthly) ups and downs.

Furthermore, when a stock like CuriosityStream falls because of general market volatility, it can be a great time to learn more about it and see whether it's a stock worth buying now that it's on sale.

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

CuriosityStream Inc. Stock Quote
CuriosityStream Inc.
CURI
$1.79 (4.07%) $0.07

*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 service.

Stock Advisor Returns
338%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

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.