Ancillary Cannabis Stocks: Navigating the 2024 Market Landscape

The cannabis industry and top marijuana stocks are witnessing a remarkable growth spurt, with its global market value hitting an impressive $20 billion in 2023. This marks a substantial 30% increase from the previous year, underscoring the growing legalization and acceptance of cannabis products. Amidst this expansion, ancillary marijuana stocks are coming into the spotlight. These stocks represent companies that back the cannabis sector, offering online platforms and technological solutions, yet they steer clear of direct cultivation or distribution.

Investors are increasingly drawn to these ancillary cannabis stocks, attracted by the opportunity to tap into the cannabis industry’s burgeoning potential. When trading these stocks, a strategic approach is key, with a focus on market trends and technical indicators. Tools like moving averages, the Relative Strength Index (RSI), and Bollinger Bands are essential for navigating these waters. They help pinpoint market trends, gauge momentum, and identify optimal moments for buying or selling. As the cannabis industry forges ahead with its digital transformation, ancillary cannabis stocks are gaining prominence, presenting a compelling avenue for investors eager to explore this thriving market.

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Ancillary Cannabis Stocks: Key Players to Watch in 2024

  1. Leafly Holdings, Inc. (NASDAQ: LFLY)
  2. WM Technology, Inc. (NASDAQ: MAPS)

Leafly Holdings, Inc.

One prominent player in the cannabis market is Leafly Holdings, Inc., which is well-known for its extensive mobile app and website. Leafly is a Seattle, Washington-based firm that provides consumers and businesses in the cannabis market with helpful information. Their website offers a wealth of information on various cannabis strains, products, and shops, enabling customers to make informed judgments regarding their consumption of cannabis.

Leafly, which is available in more than 20 states, has established itself as a trusted source for medical marijuana users and patients. The organization has established alliances with hundreds of delivery providers and dispensaries, facilitating clients’ access to their favorite items. Because of its easy-to-use layout, Leafly has been quite popular and is now a major player in the cannabis industry. Users can browse through various strains, read reviews, and even place orders online.

Third Quarter Financial Results

Leafly Holdings, Inc. reported $10.6 million in total sales for the third quarter of 2023, a marginal down from $11.8 million during the same period in 2022. The gross margin did, however, show a noteworthy improvement, rising to 89% from 87% in Q3 2022. This shows that the business can continue to turn a profit margin.

In Q3 2023, Leafly showed excellent cost control as seen by the dramatic 33% decrease in overall operating expenses to $10.9 million from $16.3 million in Q3 2022. In Q3 2022, the company recorded a net income of $15.5 million, but in Q3 2022, it reported a net loss of $2.2 million. It should be noted that a $22.3 million non-cash benefit from a change in fair value derivative obligations was included in the net income for the previous year.

Leafly reported a loss of $0.2 million in Q3 2023 for adjusted EBITDA, a non-GAAP metric used to evaluate operational performance. This is an improvement over the adjusted EBITDA loss of $5.2 million in the same quarter of the previous year. With restricted cash excluded, the company’s cash reserves at the end of the quarter were $14.5 million, a rather steady amount when compared to the prior quarter. These financial outcomes attest to Leafly’s dedication to sound money management and flexibility in a changing market.

LFLY Stock Performance

LFLY stock closed on January 4th  at $4.71, down 22.15% in the past month of trading. Currently, the stock has a range of $4.49-$16.00 and is down 2.00% year to date.

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WM Technology, Inc.

An industry leader in the cannabis industry, Weedmaps is also known as WM Technology, Inc. The company offers a plethora of information to cannabis companies and consumers through its web portal and mobile app. Its main headquarters is located in Irvine, California. A multitude of information is available on Weedmaps, including details on various cannabis strains, goods, and nearby dispensaries.

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Weedmaps, which is widely used in more than 30 states nationwide, has grown to be a well-liked website for consumers searching for cannabis-related goods and information. Through the site, users may connect with a wide network of retailers and delivery services to effortlessly get the cannabis goods they desire. Additionally, Weedmaps offers tools to assist businesses in the industry in managing their operations and expanding their clientele. Consequently, the company has had a significant influence on the way the cannabis market grows and how consumers may obtain the products and services they need.

Third Quarter 2023 Financial Highlights

WM Technology, Inc. (Weedmaps) released financial highlights for the third quarter of 2023 that show the company’s standing in the cannabis market. The company’s revenue for the quarter was $47.7 million, which was just less than the $50.5 million it brought in during the same period last year. The average monthly revenue per paying client experienced a minor dip from $3,019 to $2,938, while the number of average monthly paying clients fell from 5,576 to 5,414.

Weedmaps showed financial discipline, reporting a $2.5 million net loss for the quarter. This is an improvement from last year’s $10.5 million loss. In Q3 2023, the company’s adjusted EBITDA was a positive $10.7 million. This contrasts with a negative $(9.6) million last year. As of September 30, 2023, Weedmaps had $27.7 million in cash and no debt. This indicates a strong financial foundation. The company’s performance reflects its resilience and adaptability in the dynamic cannabis market.

MAPS Stock Performance

 

MAPS stock closed at $0.8109 on January 4th, down 13.73% in the last month of trading. The stock has a 52-week price range of $0.596- $1.88 and is up 12.58% year to date.

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Strategic Insights for 2024 Investment

The cannabis industry thrives with help from sites like Leafly and Weedmaps. These platforms link users to local dispensaries. This connection fuels the industry’s growth. Leafly, from Seattle, sees over 40 million page views monthly. Weedmaps, started in 2008, attracts nearly 6 million users monthly. They are vital in driving traffic and sales. Combined, they bring 17 million monthly visitors. This makes them crucial for dispensary owners.
As the cannabis market grows, online platforms become more crucial. Overall, they are key for the marketing and visibility of dispensaries. These platforms are essential for linking consumers with products and services. Investors and industry experts closely watch these companies. They recognize their role in shaping the cannabis industry’s digital presence. The ongoing impact of these companies is a major focus for industry stakeholders. They will continue to monitor their performance in the next year.

MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
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