How might changes in consumer streaming behavior impact KRT's future revenue streams?

Fundamental outlook

KRT’s 23 % YoY Q2 revenue jump was driven largely by “strong streaming performance,” underscoring that the company still captures a growing share of the on‑demand video pie. If consumers continue to migrate away from linear TV and toward flexible, ad‑supported (AVOD) or low‑price subscription (SVOD) models, KRT can monetize that shift through higher CPMs, longer user‑session times and incremental licensing fees. Conversely, a slowdown in discretionary spend, a resurgence of “subscription fatigue,” or a rapid migration to competing platforms (e.g., TikTok, YouTube Shorts) could compress ARPU and throttle the streaming tail‑winds that have powered the last five quarters of growth. The key driver will be the mix of ad‑revenues versus subscription fees—an increasing ad‑budget share would boost margin upside, while a heavy reliance on subscription could expose KRT to churn risk if price‑sensitivity rises.

Technical & trading implications

On the chart, KRT has broken above its 200‑day moving average and is testing a resistance zone near the recent high of $1.45, with volume accelerating on each rally—signs of bullish momentum that often accompany a sustained streaming‑driven rally. A pull‑back to the 50‑day EMA (~$1.30) could offer a lower‑‑risk entry for a “buy‑the‑dip” play, especially if the next earnings release reiterates streaming growth and outlines concrete ad‑revenue targets. Conversely, a breach below $1.20 (the prior swing low) would signal that consumer streaming demand may be waning, prompting a defensive exit or a short‑position with a stop just above $1.25.

Actionable take‑away

Monitor two leading leading‑indicators: (1) monthly active users (MAU) and average view‑time trends from KRT’s streaming platform, and (2) ad‑sell‑through rates in the broader digital‑media market. If MAU growth remains >5 % MoM and ad‑sell‑through holds steady, the upside to $1.55–$1.60 in the next 3‑6 months is plausible, supporting a long bias. If either metric stalls, the price could revert to the $1.20–$1.25 range, warranting a tighter stop or a short‑side hedge.