Technology company Creatd (CRTD) is known for its flagship product, Vocal. While its stock price has advanced 9.5% over the past month on the back of positive developments and Redditors’ interest, it has declined more than 57% since hitting its peak on July 13. So, is it wise to buy the stock now? Let’s find out.Vocal platform owner Creatd, Inc. develops digital communities and markets branded digital content. The company provides Vocal, a content distribution platform that delivers a digital publishing platform organized into niche-communities capable of hosting rich media content. Its Vocal platform provides advertisers access to target markets that most closely match their interests. (CRTD) announced on June 30 that its Vocal+ subscribers had surpassed 30,000. CRTD is based in Fort Lee, N.J.
The company also completed the acquisition of a controlling stake of WHE Agency on July 20. While these developments, in part, helped the stock surge 9.5% over the past month, the stock hit its $7.80 intraday high on July 13, driven by a short-squeeze caused by Redditors’ interest in it. However, the stock has declined 57.2% since hitting its recent high and 30% over the past six months to close yesterday’s trading session at $3.34.
CRTD is now phasing out duplicate outsourced consulting support and completing its permanent internal infrastructure. The company has not been able to generate any profit in the past 12 months. Furthermore, its average monthly cash burn during the first quarter (ended March 31, 2021) was roughly $1.80 million, representing an increase of approximately $1.30 million over its year-ago average monthly cash burn. So, CRTD’s near-term prospects look bleak.