Investing In Cannabis Stocks For 2023
Do you want to invest in the best marijuana stocks for 2023 while the market is still somewhat unstable? Long-term investing becomes challenging when market gains appear to be followed by more severe losses. Trading short-term is one way to profit from the current market volatility. Cannabis stocks are known for their high volatility, making them higher risk/reward investments.
Ancillary cannabis companies were one of the cannabis industry’s divisions that experienced severe declines in 2022. Generally, ancillary cannabis businesses provide financial support to the sector without handling the plant itself. The US cannabis market, which has a yearly market worth billions of dollars, has been impacted by delays in federal cannabis reform. Investors may be able to profit from the market’s present momentum by utilizing the sector’s rebound. The top 3 ancillary cannabis stocks to watch this week in January are listed below.
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Top Ancillary Marijuana Stocks To Watch Before February
- Leafly Holdings, Inc. (NASDAQ: LFLY)
- WM Technology, Inc. (NASDAQ: MAPS)
- High Tide Inc. (NASDAQ: HITI)
Leafly Holdings, Inc.
Leafly Holdings Inc. owns and runs a platform that connects customers to cannabis brands, authorized retailers, and information about cannabis. The company is the most reliable website for locating and purchasing cannabis goods from licensed vendors worldwide. More than 125 million individuals use Leafly annually to research cannabis and purchase it from neighboring shops online. Customers can make wise purchasing decisions because of the company’s vast resources, which include technology and advertising services. This encourages repeat business and attracts new clients for cannabis businesses. Customers may now purchase cannabis directly from the business website thanks to the online cannabis delivery service the company built when it began operating in California in May.
The company reports that third-quarter total sales for 2022 were $11.8 million, an 8.1% rise from third-quarter 2021. In addition, the gross margin dropped from 88.4% in Q3 2021 to 87.1%. In the third quarter of 2021, which also contained gains on derivative liabilities of $22.3 million, the net loss was $4.5 million as opposed to the net income of $15.5 million as a result of fair value accounting. The company lost $3.6 million in adjusted EBITDA in the third quarter of 2021, compared to $5.2 million in the third quarter of 2018. Additionally, cannabis retailers and customers in the Toronto area now have a third-party delivery option thanks to a collaboration between Leafly and Uber Eats.
LFLY Stock Performance
LFLY stock closed on January 20th at $0.6441, up 27.82%% in the past month of trading. Currently, the stock has a range of $0.455-$11.58 and is down 1.20% year to date. According to analysts at CNN Business, LFLY stock has a median price target of $3.75 per share. In this case, this would represent an upside of 489.16% from its last trading price of $0.6441.
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WM Technology, Inc.
Weedmaps is an online retailer for the cannabis industry and a user and business directory. The company’s owner is WM Technology, Inc. Cannabis retailers frequently employ the cloud-based SaaS solutions from WM Business as their operating system. The goods and services offered by WM Business frequently make it less difficult to abide by the complex and ever-changing legislative regulations governing the cannabis industry. In May, WM Technology launched a digital payment option in Ontario in an effort to broaden its product line. Because curbside pickup, delivery, and cashless transactions were increasingly required, this benefited small enterprises. In 2021, the company purchased Sprout, a well-known cannabis CRM, and marketing platform.
Compared to the third quarter of 2021 ($50.9 million in revenue), Weedmaps revealed third-quarter 2022 data with revenue of $50.5 million. Additionally, compared to the same period last year, there are now 5,576 paying customers on average monthly, an increase from 4,444 clients. In contrast to net profits of $49.2 million at the same time last year, the company lost $10.5 million. The adjusted EBITDA decreased from $10.4 million in the same period last year to $9.6 million this quarter. Weedmaps anticipates its revenue for the second half to be closer to the wide end of its prediction based on current business patterns and conditions. Accordingly, the fourth quarter’s revenue is expected to decrease by a low double-digit percentage from the prior year.
MAPS Stock Performance
MAPS stock closed at $1.16 on January 20th, up 20.83% in the last month of trading. Currently, the stock has a 52-week price range of $0.802- $8.35 and is up 14.85% year to date. According to analysts at CNN Business, MAPS stock has a 12-month average price target of $3.98 per share. In essence, this would represent an upside of 244.16% from its last trading price of $1.16.
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High Tide Inc.
High Tide Inc. is a cannabis dispensary producing and markets cannabis-related goods. In addition to a well-known Canadian cannabis brand, High Tide’s portfolio includes a reputable international manufacturer and distributor of cutting-edge smoking accessories. When the business first started, its goal was to establish itself as the largest accessories online retailer. The High Tide brand is presently available at 127 retailers across Canada. Blessed CBD’s primary market is the UK, and High Tide acquired the business in October 2021. With the opening of its 66th retail cannabis store, the firm increased its market share and beat all competitors to take the top spot in Alberta’s market. High Tide revealed that the acquisition of NuLeaf Naturals was its biggest to date.
In the third quarter of 2022, High Tide generated revenue that rose by 98% to $95.4 million from $48.1 million in the corresponding quarter the year before. Compared to the second quarter of 2022, revenue increased sequentially by 18%. Additionally, the gross profit increased by 54% from $16.7 million in the third quarter of 2021 to $25.8 million in the current quarter. The company’s gross profit margin dropped from 35% in the same quarter last year to 27% in the three months that ended July 31, 2022. The gross profit margin was almost in line with the final 28% percentage for the previous quarter when looked at sequentially. On December 19, the company opened its 145th retail outlet under the Canna Cabana name in Canada. On January 30, following the closing, the corporation will announce its fiscal 2022 fourth-quarter results.
HITI Stock Performance
The shares of HITI finished at $1.51 on January 20th, up 3.42% in the last month of trading. The stock currently trades in a 52-week price range of $1.30 to $5.893, down 1.95% year to date. HITI stock has an average price target of $8.96 per share, according to Tip Ranks analysts. In this example, the upside would be 493.38% over the current market price of $1.51.
Top Ancillary Pot Stocks For February 2023
By examining their financial accounts and press announcements, you might determine which cannabis companies are the best on the market. Some seasoned traders are aggressively putting short-term bets on well-known cannabis companies in an effort to profit from the present market volatility. Before starting a position, use technical indicators and chart patterns to help locate the finest market opportunities. Your chances of succeeding in trading will rise if you look for profit-taking opportunities. Due to the volatility of major marijuana companies, these may be some of the best marijuana stocks to watch this month.
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