Investing In The Best Marijuana Stocks In 2021
Are you looking for new marijuana stocks to add to your watchlist in July? Since 2020 the cannabis industry has been growing rapidly in the US and across the world. For many industries, the pandemic caused massive shutdowns and economic hardship. But the cannabis market proved to be extremely resilient and has grown substantially throughout the period. Generally speaking, with new state legalizations and added demand for cannabis, many leading companies have reported strong earnings.
In the US. In Canada, most companies have already established a form of entry into the American cannabis market and are awaiting federal cannabis reform. Currently, there are a few cannabis reform bills being introduced by lawmakers that could begin this process. For the next five years, the cannabis industry is predicted to more than double in sales. In a recent report from Statista US sales of recreational cannabis are expected to reach $42 billion by 2026.
In the US Statista predicts the US will have close to 50 million consumers by 2025. For many investors, the cannabis industry represents one of the fastest-growing markets in this decade. With this growth comes the introduction of new cannabis companies that are being brought public. Some of these new companies are multistate operators and others are ancillary cannabis companies.
Cannabis Industry Growth And Cannabis Sector Performance
Since 2020 mergers and acquisitions have sped up the expansion of the cannabis industry. Essentially most cannabis companies have used this method to enter new markets and establish a larger footprint. Another way many cannabis companies have become publicly traded is using SPAC deals. Special Purpose Acquisition Companies have surpassed traditional IPOs to enter the market.
Recently this has brought new cannabis companies to the stock market that may produce returns for investors from current trading levels. For the past few months, we have witnessed declines in the cannabis sector. As a result, many leading marijuana stocks to invest in are trading at much lower stock prices. At current trading levels, many of these top cannabis stocks could see some upside this summer.
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For new investors getting familiar with some of these companies and watching how they perform in the market are important steps into making a good investment. As an investor doing your own due diligence and researching trading patterns are key elements in making profitable trades. With this in mind, let’s take a look at 2 top marijuana stocks to add to your watchlist before July.
Marijuana Stocks To Watch Right Now
- WM Technology, Inc. (NASDAQ:MAPS)
- TPCO Holding Corp. (OTC:GRAMF)
WM Technology, Inc.
In June one of the recent SPAC deals has changed ticker symbols. MAPS stock also known as the online platform Weedmaps is now officially WM Technology, Inc. Primarily, Weedmaps it’s an online listing marketplace for cannabis consumers and cannabis companies. Prior to going public, the company built one of the largest online markets for connecting cannabis companies to new consumers. In 2020 WMH holdings were valued at having an estimated $160 million in revenue. Now with a market valuation of $1.5 billion Weedmaps can continue to be a major online hub for cannabis consumers. With the massive growth in the cannabis industry Weedmaps is also building its SAAS platform and has given revenue guidance for 20221 of $205 million.
Specifically, SaaS provides consumers with information regarding cannabis products, including online ordering, local retailer and brand listings, product discovery, and consumer education on cannabis and its history, uses, and legal status. WM Technology also provides a point of sale, logistics, wholesale, and order solutions. At the present time, Weedmaps currently has an estimated 10 million monthly active users and approximately 18,000 business listings in the U.S. Currently, Weedmaps client base includes over 55% of holders of retail licenses in all cannabis markets. As it stands, with more cannabis sales moving to online pickups and deliveries Weedmaps presents an interesting way to invest in the cannabis market.
MAPS Stock Performance
MAPS stock closed on June 24th at $18.92 up 48.16% year to date. In the past month MAPS stock has gained 21.91% with a high in February of $29.50. Down 9.78% in the last five trading days, this could be a good opportunity to add MAPS stock to your watchlist. As the possibility of federal cannabis reform increases WAPS stock represents an ancillary marijuana company that has a large impact online on the cannabis market. For this reason, MAPS stock could be one of the best marijuana stocks to watch as we close out June.
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TPCO Holding Corp.
TPCO Holding Corp. is one of the largest cannabis operators in California. Known as The Parent Company the newly formed public company made its way to the market through a SPAC deal last year. Composed of direct-to-consumer platform Caliva, and hemp manufacturer Left Coast Ventures TPCO also brings to the table global icon and entrepreneur Shawn Jay-Z Carter. Specifically, Carter is Chief Visionary Officer and brand strategist for TPCO. In addition, Roc Nation will also be involved in the partnership providing artists, athletes, and influencers to establish brands.
In May TPCO released the first quarter of 2021 net sales of $39.9 million and adjusted net sales of $45.6 million. Additionally, the company saw gross profits for Q1 of 2021 of $7.2 million or 18% of net sales. During Q1 the company launched Shawn “JAY-Z” Carter’s MONOGRAM a high-end premium cannabis product with reimages of iconic photos of American photographer Slim Aarons. TPCO has three streamlined facilities producing 8 core brands with a focus on higher-margin product offerings. In June TPCO made its first inaugural investments in Black and women-led business.
GRAMF Stock Performance
GRAMF stock closed on June 24th at $5.60 down 44.66% year to date. In February GRAMF stock reached a high of $13.96 and is up 3.32% in the past five trading days. According to analysts at Tip Ranks GRAMF stock has a 12-month average price target of $11.00 per share. This would represent an increase of 96.43% from its current stock price. With this in mind, GRAMF stock could be a top cannabis stock for your watchlist in July.
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