Investors who bought stocks during the Covid-19 market crash in 2020 have generally experienced some big gains in the past two years. However, some big-name stocks performed much better than others since the pandemic bottom.
Genius Brands' Bumpy Road:
Children’s entertainment company Genius Brands International Inc. (NASDAQ:GNUS) has been a solid investment over the past two years, even though the stock has an abysmal long-term track record.
In fact, the stock lost 75.2% of its overall value in the last five years.
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Much of that extreme value destruction in the past decade has come as a result of dilution and multiple reverse stock splits. Genius’s outstanding share count is up a mind-boggling 5,220% in just the past five years.
At the beginning of 2020, Genius shares were trading at 30 cents, even after completing a 1-for-4 reverse stock split in late 2016. By the beginning of March, the stock was still trading at 29.7 cents as news of the virus spreading in China prompted concerns about a U.S. pandemic.
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On March 12, Genius shares dropped all the way down to 5.2 cents, marking a new split-adjusted all-time low for the stock. Fortunately, Genius shares bounced along with the rest of the market starting in late March.
Genius shares recovered to as high as $11.73 by early June on news that actor Arnold Schwarzenegger made a significant investment in the company.
Genius also launched its “Kartoon Channel!” on several popular streaming platforms.
Genius In 2022, Beyond
Unfortunately for Genius investors, the big headlines have yet to transition to big profits. In July 2020, CEO Andy Heyward said the company would be profitable by the end of the year. Unfortunately, Genius reported another $4.5 million net loss in the most recent quarter.
Genius started 2022 trading back down at $1.06 and has yet to repeat its big 2020 move in 2022. Today, Genius is trading at 79 cents.
Still, investors who bought Genius Brands stock the day it hit its 2020 pandemic low and held on have generated some big returns at this point. In fact, $1,000 in Genius Brands stock bought on March 12, 2020, would be worth about $4,094 today.
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Looking ahead, Genius is understandably not on the radar of most Wall Street analysts. However, the one analyst that covers the stock is bullish and has a $5 price target, suggesting 530.1% upside over the next 12 months.
