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Here's Why CuriosityStream Shares Gained 13.7% Last Month

By Anders Bylund – Sep 3, 2021 at 12:29AM

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A respectable earnings report and some rosy content distribution news helped the documentary video vendor bounce back from a painful July.

What happened

Shares of CuriosityStream (CURI 0.75%) rose 13.7% in August 2021, according to data from S&P Global Market Intelligence. The documentary and instructional content provider posted solid second-quarter results and followed up with some key content news.

So what

In the second quarter, CuriosityStream saw revenues rise 27% year over year to $15.3 million. Net losses rose from $4.3 million to $8.3 million, or $0.19 per diluted share. Your average analyst had been looking for a net loss of roughly $0.18 per share on top-line sales near $15.0 million, so this report was a mixed bag. Investors were quick to focus on the upside, sending share prices sharply higher the next day. The stock had taken a 19% haircut in July, setting itself up for a quick rebound.

CuriosityStream also posted a few content-related news items last month. Annual subscriptions to the service are now available at a discount from Walmart's bulk-shopping warehouse club, Sam's Club. The linear Curiosity Channel and its video-on-demand sister service rolled out to viewers of the live-streaming fuboTV service. The company also announced the Sept. 23 premiere of Heval, the first feature-length film under the CuriosityStream banner. Helmed by Emmy Award-winning director Adam Wood, this documentary about British actor Michael Enright and his involvement in Middle East politics might compete for headline-grabbing awards consideration itself.

A hand points a remote control at a huge wall of TV screens, all showing different content.

Image source: Getty Images.

Now what

As CuriosityStream's content and services become available on a wider range of platforms, the company just might be telling the early chapters of a long-term success story here. However, it's too early to tell how sustainable this business might be in the long run, and CuriosityStream is burning cash in every quarter.

So far, this young company is a volatile micro-cap stock with trailing revenues of just $42.1 million and a sky-high price to sales ratio. The big swings that bounced CuriosityStream's share prices between $7.44 and $24 over the last year will probably continue for the foreseeable future. Curious investors may want to buy in on the dips along the way. Just keep your investment fairly small, because this bet comes with a generous helping of risk.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CuriosityStream Inc. The Motley Fool recommends fuboTV, Inc. The Motley Fool has a disclosure policy.

Stocks Mentioned

CuriosityStream Stock Quote
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