October 2024 Cannabis Stock Watchlist: High-Growth Opportunities
The US cannabis industry continues to expand at an impressive pace, with projections estimating it could reach $45 billion in annual sales by 2025. The growth has been fueled by the increasing legalization of both medical and recreational cannabis across states. Recently, headlines have focused on the possibility of federal cannabis legalization, which would be a game-changer for the industry. Investors are closely watching these developments as they could drive significant stock gains. As the industry evolves, keeping an eye on the top-performing cannabis stocks can offer promising investment opportunities.
Applying technical analysis and proper risk management strategies is crucial when investing in cannabis stocks. Technical analysis helps identify potential entry and exit points by examining price trends and trading volumes. However, the cannabis sector can be volatile. Therefore, managing risk by setting stop-loss orders and diversifying investments is essential. Monitoring key news and understanding stock performance patterns can help minimize risks while maximizing potential returns in this dynamic market.
As the cannabis industry continues to grow in the United States, several ancillary companies are gaining significant attention. These companies don’t directly grow or sell marijuana, but they provide vital services and products that support the cannabis market. In October, Leafly Holdings, Inc. (LFLY), WM Technology, Inc. (MAPS), and Village Farms International, Inc. (VFF) stand out as the top stocks to watch. Below, we will explore their presence in the market and review their latest financial performance.
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October 2024’s Best Cannabis Stocks: Key Players for Your Watchlist
- Leafly Holdings, Inc. (NASDAQ: LFLY)
- WM Technology, Inc. (NASDAQ: MAPS)
- Village Farms International, Inc. (NASDAQ: VFF)
Leafly Holdings, Inc.
Leafly Holdings is one of the leading online cannabis marketplaces in the United States. It operates a platform that connects consumers with dispensaries and cannabis products. Leafly provides reviews and educational content, making it a crucial resource for customers and dispensaries. Leafly’s presence spans the entire US, partnering with thousands of dispensaries nationwide. This makes it one of the most recognized names in the cannabis space, particularly in areas where dispensary regulations are complex.
Leafly’s platform is an essential bridge between dispensaries and consumers, helping users find the latest deals and product offerings. With a significant market share in states like California, Colorado, and Michigan, where cannabis use is legal, Leafly has positioned itself as a top player in ancillary cannabis services. As legalization spreads across more states, Leafly is likely to see further growth in user engagement and dispensary partnerships.
In its most recent financial report, Leafly Holdings posted a slight revenue increase, although overall sales have been relatively flat. The company reported $11.9 million in revenue for the second quarter of 2024, a 3% year-over-year increase. However, Leafly has been facing challenges with profitability. The net loss for Q2 2024 was $4.1 million, which is an improvement compared to the previous year’s loss of $6.5 million. The company has been working to streamline operations and cut costs, which has helped narrow the losses. With increasing advertising revenue and more dispensaries subscribing to their platform, Leafly could see a positive financial outlook in the coming quarters. This is especially true if the company can continue to grow its market share in key legal states.
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WM Technology, Inc.
WM Technology, Inc., commonly known as Weedmaps, is another giant in the cannabis industry. The company offers an online platform that connects cannabis consumers with retailers, products, and brands. Customers widely use weedmaps to locate nearby dispensaries, compare product offerings, and read reviews. Its reach in the United States is vast, with thousands of dispensaries listing their products on the platform. Weedmaps is especially popular in large markets like California, where the cannabis industry is booming.
Weedmaps has become a trusted source of information for cannabis consumers, providing not only a marketplace but also educational content about products, strains, and legalities. The platform’s extensive database helps users make informed purchasing decisions. It’s one of the most comprehensive platforms for cannabis users, making it an essential player in the ancillary marijuana market.
In terms of financial performance, WM Technology has been experiencing mixed results. The company reported second-quarter 2024 revenue of $49.2 million, a 1% decrease from the same period in 2023. However, the company’s adjusted EBITDA showed improvement, coming in at $8.5 million, a positive development after losses in the previous quarters. Weedmaps has been focusing on cost-reduction strategies and improving its advertising revenues. While the platform’s revenue growth has been slow, it remains a key player in the ancillary cannabis space. The company’s large user base and widespread presence make it a stock worth watching, especially as it continues to refine its business model.
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Village Farms International, Inc.
Village Farms International, Inc. is a unique player in the cannabis industry. The company initially started as a greenhouse grower for fruits and vegetables. However, it has since expanded into the cannabis market, leveraging its agricultural expertise. Village Farms is well-known for its Pure Sunfarms brand, which is one of the largest cannabis producers in Canada. In the United States, the company has established a strong presence in the CBD space, particularly in states where marijuana has yet to be fully legalized.
Village Farms operates several large-scale greenhouses in the US and Canada, using advanced growing techniques to produce high-quality cannabis products. While their direct dispensary presence is limited compared to platforms like Weedmaps or Leafly, Village Farms has developed solid wholesale partnerships. This allows the company to distribute its CBD products across the United States, especially in states with thriving wellness and CBD markets.
Village Farms recently reported second-quarter 2024 revenue of $78 million, a 5% increase from the previous quarter. Much of the revenue growth was driven by its Canadian operations, but the US CBD market also played a role. The company’s Pure Sunfarms brand continues to lead in the Canadian cannabis market, contributing to strong gross margins. However, Village Farms did report a net loss of $2 million for Q2 2024, largely due to expansion costs and investments in its CBD operations in the US. Despite this, the company remains optimistic about future growth, particularly as it invests in cannabis and CBD product lines.
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October 2024 Cannabis Stock Watchlist: High-Growth Opportunities
In October, Leafly Holdings, WM Technology, and Village Farms International stood out as key ancillary players in the US cannabis industry. These companies provide vital services and products that support the growth of the broader cannabis market. Leafly and Weedmaps serve as crucial platforms for connecting consumers with dispensaries, while Village Farms brings agricultural expertise to the cannabis and CBD sectors. Each company faces its own challenges, but their potential for growth in a rapidly expanding market makes them stocks worth adding to your watchlist. As the cannabis industry evolves, these ancillary companies will likely continue to play essential roles in supporting its development.
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