What happened

Shares of CuriosityStream (CURI 4.35%) 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.