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Although creator-first technology company Creatd’s (CRTD) expanding pool of creators on its Vocal+ platform has accelerated its revenues, the company has been unable to translate its revenue growth into profit. Furthermore, given that its current valuation multiples are not justified by its weak financials, let’s find out if the stock is worth owning now.Technology company Creatd, Inc. (CRTD) in Fort Lee, N.J., markets branded digital content and e-commerce opportunities, and develops curated digital communities for broadcasters, creators, brands and entrepreneurs. CRTD’s shares are up 26.5% over the past three months and 44.9% over the past month. However, the stock has lost 61.3% over the past year.
Although substantial growth in its creator subscription base since the launch of the company’s flagship Vocal+ platform in early 2020 has bolstered its revenue growth, the company has not been able to generate any profit in the past 12 months. CRTD’s stock is currently trading 28.6% below its 52-week high of $7.81.
The company’s current valuation is not justified by its staggering losses and rising expenses. Also, expected pressure on tech stocks because President Biden has signed a new executive order to crack down on anti-competitive practices in big tech, along with CRTD’s weak profitability, could cause the stock’s price to pullback. Here is what we think could influence CRTD’s performance in the near term:
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