Shares of leading children’s media company Genius Brands International (NASDAQ:GNUS) plummeted more than 19% in price after the company last week announced its recent deal to acquire WOW! Unlimited Media. In addition, the company has weak financials and poor profitability. So, is the stock worth betting on now? Let’s find out.Genius Brands International, Inc. (GNUS) in Beverly Hill, Calif., is a prominent worldwide children's media company that creates, produces, markets, and licenses branded children's entertainment properties and consumer products for distribution in media and retail. In addition, it acts as a licensing agent for Llama Llama.
The stock has declined 25.3% in price over the past nine months and 11.5% over the past three months to close yesterday’s trading session at $1.39.
Though GNUS is working on various collaborative projects and major product launches to accelerate its growth, the company’s poor profitability and financial fragility could make investors anxious.