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: