Angel Studios ($ANGX) produces and acquires values-based movies and series and has a Netflix-like platform you can subscribe to. It went public in September and the stock price is down 71%. It still trades at a $875M market cap and this makes no sense to me. This thing should be trading at no more than $250M.
This is troublesome:
\- Its cash + accounts receivable balance as of Sep 2025 = $86M
\- It's net loss year-to-date as of Sep 2025 YTD = $92M
\- And it owes in current liabilities $113M as of Sep 2025
I don't know how this thing isn't already insolvent.
The only thing it has going for it is that it has recurring annual revenue of $115M from its subscribers (although I've had two friends try to cancel their subscriptions and the process was painful for them). But the flip side of these subscribers is they are spending soooo much money to acquire and retain new subscribers. They spent $177M in sales and marketing YTD Sep 2025. This is insane! The unit economics don't work for this business, especially for a business that relies on 'hits'--getting a hit movie or series.
I feel like this thing is going to $0.