TOON Stock: (NYSE American: TOON) is the stock symbol for Kartoon Studios Inc., a company that develops, produces, and distributes children’s entertainment content. Kartoon Studios’ streaming business recently hit break-even for the latest quarter, a notable accomplishment among streaming services, many of which have seen losses. Is Kartoon Studios a threat to Netflix and Disney?
Toon Stock – Kartoon Studios Inc. – Business Overview:
- Publicly traded global media company (NYSE American: TOON)
- Develops, produces, markets, and licenses animated entertainment properties and consumer products for kids and families.
- Focuses on creating positive and educational content with “no violence, no negative stereotypes, and no inappropriate language” https://www.kartoonchannel.com/.
- Owns or controls a library of over 3,800 episodes of animated programming.
- Operates its own streaming service, Kartoon Channel!, available on cable/satellite and OTT platforms.
- Aims to become the world’s leading animated entertainment company through organic growth and acquisitions.
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Recent Developments:
- Rebranded from Genius Brands International to Kartoon Studios in June 2023.
- Announced a package of original animated feature films for children in July 2023, leveraging AI technology to streamline animation https://www.anbmedia.com/author/anbmedia/.
- These films will debut on the Kartoon Channel and other platforms in 2024 and 2025 and feature properties like Stan Lee’s creations and Llama Llama.
- Acquired exclusive worldwide rights to use Stan Lee’s name, likeness, and signature in July 2020.
Company Leadership:
- Andy Heyward (Chairman and CEO) – Extensive experience in the entertainment industry.
Financial Performance:
- Growing rapidly but not yet profitable.
- Reported revenue of $62.3 million in 2022 (up 691% from 2021).
- Reported a loss of $45.6 million in 2022.
Where to Learn More:
- Kartoon Studios website: https://www.kartoonstudios.com/
- Channel website: https://www.kartoonchannel.com/
- Kartoon Studios LinkedIn: https://www.linkedin.com/company/kartoonstudios
TOON Stock Overview
- Current Price: $1.33 (as of March 19, 2024)
- Market Cap: $46.96 million
- Stock Exchange: NYSE American
- 52 Week Range: $0.93 – $3.45
The company recently changed its name from Genius Brands International to Kartoon Studios Inc. Just last month, the company announced its streaming service business has achieved record revenue, increased its paid subscribers, expanded its international market coverage and reached break-even EBITDA in the fourth quarter of 2023.
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TOON Stock Competitor Analysis
While TOON Stock (Kartoon Studios) focuses on children’s entertainment, their competitors can be approached from two angles:
- Broader Children’s Entertainment Market:
- Traditional Media Companies: Walt Disney Company (DIS), ViacomCBS (VIAC), Sony Pictures Entertainment (part of Sony Group Corporation – SONY)
- Streaming Services with Children’s Programming: Netflix (NFLX), Amazon Prime Video (part of Amazon.com – AMZN), Hulu (owned by Disney, Comcast, and NBCUniversal)
- Educational Entertainment Companies: Sesame Workshop, National Geographic Society
- Smaller, Publicly Traded Children’s Entertainment Companies:
- The sources I found listed companies that might not be direct competitors but fall under the “consumer discretionary” sector with some overlap in target audience. Here are a few examples:
- Gaia (GAIA) – Specializes in documentaries with a focus on consciousness, yoga, and alternative lifestyles.
- CuriosityStream (CURI) – Focuses on factual and educational content across various categories.
- Bright Scholar Education (BEDU) – Develops online curriculum and educational products.
While TOON stock may not be a homerun yet, CEO Andy Heyward puts the company’s growth in perspective:
Kartoon Studios CEO, Andy Heyward stated, “In 3½ years, the growth of the Kartoon Studios’ streaming business in the U.S. and globally has been impressive. Even Netflix took many years to reach break-even. We challenged our leadership to learn from its practices and to surpass it. Not only have we already reached EBITDA break-even, but we are now experiencing solid growth, as we see consumers responding to the Kartoon Channel!’s brand of age-appropriate children’s content and the easy to navigate interface.”
It’s important to note that Toon Stock might not directly compete with all the companies listed above. However, these companies provide context for the broader children’s entertainment landscape and potentially compete for viewers and content licensing deals.
Is TOON Stock A Buy?
Kartoon Studios Inc. (TOON) currently has a 200-day moving average of 1.6. If we’re following the simple trading strategy of buy when shares are above their 200-day line and sell when they dip below it, TOON stock would be a sell at the moment. However, other analysis would suggest the stock is currently a hold.
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