Creatd, Inc. (CRTD) stock prices surged by 14.73% shortly after market trading commenced on July 19th, 2021, bringing the price per share up to USD$3.66 early on in the trading day.
Vocal+ Success
June 30th, 2021 saw the company report having achieved a significant milestone in having surpassed 30,000 subscribed users of Vocal+, the CRTD’s premium subscription offering of its flagship product, Vocal. The Vocal+ platform was launched earlier in 2020 after three years of its predecessor having driven the main business. Cumulatively, Vocal reports more than 1 million freemium and Vocal+ premium members that comprise its innovative creator community.
Continued Development
In light of these promising developments, the company forecasts reporting USD$1 million in net revenues for the second quarter of 2021, which will see a threefold increase from the numbers reported for the same quarter of the prior year. The upcoming quarter is set to see the company allocate resources towards the delivery of additional features that will enhance CRTD’s ability to expand and consolidate its creators and their audiences while driving down marketing costs. The company will, then, rely less on traditional paid media avenues while leveraging the organic traction of their strong network of 39 creator communities.
Financial Guidance
In tandem with the company’s newly released Vocal Ambassador Program, CRTD has found itself to have gained access to a source of organic growth for the platform. With the company expected to continue growing, it anticipates its creator-first strategy to generate anywhere from USD$1.6 million to USD$1.8 million in revenues for the third quarter of 2021. With a USD$1.5 million reductions in marketing costs, CRTD forecasts operating expenses in the amount of USD$3.3 million for Q3 2021
Meme Stock Phenomenon
Despite these promising developments, the lack of recent news or changes in fundamentals points to CRTD having become the latest target of the meme stock phenomenon. With retail investors coordinating to execute short squeezes on underdog companies with high floats, the phenomenon has been upending institutional investors over the past several quarters. Rife with volatility and risk, these gains are not something CRTD can expect to sustain for very long.
Future Outlook for CRTD
Despite the fleeting nature of the meme stock phenomenon’s touch, CRTD is poised to capitalize on the momentum generated by its increased scope of exposure. In a bid to use that limelight to prove to investors that they can justify such surges in stock price on merit, CRTD is keen to facilitate the resources at its disposal to drive in more organic growth over the long term.
