Top Ancillary Cannabis Stocks For Q2 2023
Do you intend to purchase marijuana stocks in 2023? Over the past few years, there have been major decreases in the cannabis industry. Many of the largest cannabis companies are now trading at penny stock prices after a rise from the end of 2020 to February 2021. Penny stocks are any stocks that are traded for less than $5. Despite the industry’s well-known high level of market volatility, short-term investors can nevertheless envision reaping significant gains.
Businesses that provide cannabis-related goods or services without actually dealing with the marijuana plant are known as ancillary cannabis companies. By giving growers, processors, distributors, and retailers access to essential infrastructure, technology, and services, these enterprises significantly contribute to the cannabis industry. These businesses are well-positioned to prosper alongside the cannabis industry as it expands in different ways.
Investors may be able to profit from the market’s present momentum by utilizing the sector’s rebound. The top 2 cannabis-related ancillary stocks to watch in April 2023 are mentioned below.
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- WM Technology, Inc. (NASDAQ: MAPS)
- Leafly Holdings, Inc. (NASDAQ: LFLY)
WM Technology, Inc.
Weedmaps is an online store for the cannabis industry and a user and business directory. The owner of the business is WM Technology, Inc. Cannabis stores frequently employ the cloud-based SaaS solutions from WM Business as their operating system. The goods and services WM Business offers frequently make it less difficult to abide by the complex and ever-changing legislative regulations governing the cannabis industry. WM Technologies launched a digital payment option in Ontario to broaden its product line in May. Because curbside pickup, delivery, and cashless transactions were becoming increasingly required, this benefited small enterprises. In 2021, the business purchased Sprout, a well-known cannabis CRM and marketing platform.
The business disclosed its financial results for the fourth quarter and the entire 2022 year on March 16. Q4 2022 revenue was $49.3 million compared to Q4 2021 revenue of $54.2 million. In particular, the average monthly paying client count increased to 5,689 from 4,766 during the same period last year. Weedmaps saw a net loss of $60.8 million as opposed to a net profit of $78.4 million during the same period last year.
For the fiscal year that ended on December 31, 2022, revenue climbed from $193.1 million to $215.5 million. The monthly paying customers increased from 4,337 to an average of 5,457. The corporation had a net loss of $82.7 million in 2022 instead of a net gain of $152.2 million the year before. In comparison to the previous year, Weedmaps’ adjusted EBITDA decreased from $31.7 million to $(9.6) million.
MAPS Stock Performance
MAPS stock closed at $0.6175 on April 26th, down 26.22% in the last month of trading. Currently, the stock has a 52-week price range of $0.596- $6.33 and is down 38.86% year to date. According to analysts at CNN Business, MAPS stock has a 12-month average price target of $1.50 per share. In essence, this would represent an upside of 145.62% from its last trading price of $0.6175.
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Leafly Holdings, Inc.
Leafly Holdings Inc. is the owner and operator of a platform that links customers to cannabis brands, authorized retailers, and educational resources. The most reliable resource for finding and purchasing cannabis goods from licensed vendors worldwide is Leafly. Each year, more than 125 million individuals use Leafly to learn about cannabis and purchase it from nearby shops online. Customers can make wise purchasing decisions thanks to the company’s extensive resources, which include technology and advertising services. This promotes customer retention and draws in new ones 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 reported fourth quarter and full year 2022 sales of $47.4 million, an increase of 10% over the full year 2021. $12.1 million was the total revenue for Q4 2022, which was in line with Q4 2021. The company’s net loss for the quarter was $5.1 million, or $5.8 million when compared to Q4 2021. In addition, the adjusted EBITDA loss was $4.2 million rather than $4.1 million in the fourth quarter of 2021. Compared to a net loss of $12.0 million in FY 2021, the full-year 2022 net income was $5.1 million. Non-cash changes to derivative liabilities totaling $36.8 million were primarily responsible for this discrepancy, which was somewhat offset by an increase in operating expenses. Leafly issued first quarter 2023 guidance expecting revenue to be between $11.0 million and $11.3 million and adjusted EBITDA loss to be in the range of $4.3 million to $4.0 million.
LFLY Stock Performance
LFLY stock closed on April 26th at $0.3249, down 14.50%% in the past month of trading. Currently, the stock has a range of $0.3118-$11.48 and is down 59.89% year to date. According to analysts at CNN Business, LFLY stock has a median price target of $2.50 per share. In this case, this would represent an upside of 670.65% from its last trading price of $0.3249.
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Ancillary Pot Stocks Q2 0223
Finding the best cannabis companies on the market could be easier by looking at their financial statements and press releases. To benefit from the current market volatility, many seasoned investors are actively trading short-term stakes in the top cannabis companies. Use technical indicators and chart patterns to identify the best entry points and take-profit zones before opening a position. You can increase your ability to close lucrative trades by putting yourself in favorable situations. The most well-known US marijuana companies may be among the top pot stocks to watch in 2023 because of their volatility.
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