CuriosityStream (CURI) just reported a 46% jump in revenue for the third quarter, fueled largely by explosive growth in its AI training data licensing business. The company also declared a dividend for the fourth quarter.
See our latest analysis for CuriosityStream.
CuriosityStream’s pivot into AI data licensing and the latest quarterly results have caught investors’ attention, with the share price rallying 188.6% year-to-date and a stunning 199.3% total shareholder return over the past twelve months. Momentum remains strong in the short term, which suggests the renewed growth narrative is resonating even as the company navigates evolving revenue streams.
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With the stock’s rapid ascent this year and ambitious revenue forecasts ahead, the big question is whether CuriosityStream is still trading at a discount or if the market has already priced in all that future growth.
With CuriosityStream shares closing at $4.56 and the narrative’s fair value set at $6.17, current pricing suggests meaningful upside for those who believe in the company’s growth blueprint. Strong catalysts and forecast improvements frame an ambitious but debated valuation, driven by specific company milestones.
Surging demand for high-quality, rights-cleared video for AI training is driving a transformative new licensing revenue stream for CuriosityStream. Management cited recurring and growing partnerships with large-scale AI companies. This is establishing a durable, high-margin revenue base that is expected to fuel both top-line and earnings growth.
Read the complete narrative.
Is this growth run just getting started? The most popular narrative highlights bold assumptions for future revenue, profit margins, and share count. There’s a projection buried within that could flip expectations for years ahead. Curious what strategic shifts and industry forces are steering this bullish price target? Delve into the full narrative to see the math behind the market optimism.
Result: Fair Value of $6.17 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, persistent subscription declines and the unpredictable nature of AI licensing revenue could easily disrupt CuriosityStream’s current growth trajectory.
Find out about the key risks to this CuriosityStream narrative.
While analysts see upside based on growth and future potential, the current price-to-sales ratio of 4x stands out. This is higher than the US Entertainment industry average of 1.7x and well above the fair ratio of 1x. Such a gap suggests investors today could be paying up for optimism, which increases the level of valuation risk if growth stalls. Does the market know something others do not, or are expectations running ahead of reality?