Last year, the Indian entertainment and streaming company Eros merged with the American television and film producer STX Entertainment to form Eros STX Global (NYSE: ESGC).
Over the past month, the stock has been in the middle of a downturn and tanked by as low as 45%. While that may be the case, experts also believe that the small-cap stock could also prove to be a long-term winner if investors are willing to be patient with pitfalls in the short term.
The company is quite small and commands a market cap of only $478 million at this point. Additionally, it is primarily dependent on fresh share issuance and debt in order to fund its operations. Operating a streaming service that produces original content is not the easiest business in the world. Hence, it might be argued that the Eros STX Global stock is a high risk but potentially high reward play at this point.
Finance and Entertainment Reporter
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