Top Ancillary Cannabis Stocks For October 2022

Are Marijuana Stocks Setting Up For A Rebound?

What marijuana stocks should you buy in 2022? The ancillary marijuana stock market is one sector that has experienced sharp drops to start the year. Companies that serve the cannabis industry but don’t work with the plant directly are known as ancillary cannabis companies. Numerous businesses frequently assist the cannabis sector. Ancillary businesses can aid in giving the cannabis sector a presence online or equipment for growing cannabis. – MarijuanaStocks

Over the first half of 2022, the value of a few stocks with Nasdaq listings that are tied to cannabis started to drop. Thus, a number of these marijuana stocks are currently available for purchase by investors at a markedly reduced cost. Some of these stocks can provide potential cannabis investors with a place to start their long-term investments or a chance to profit from current market changes. The following list includes what may be the best 2 ancillary marijuana stocks to keep an eye on in October.

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Best Ancillary Marijuana Stocks For Watchlist In October

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

Leafly Holdings, Inc.

In February, Leafly Holdings Inc., a well-known online cannabis retailer and consumer resource announced that trading in its common stock, LFLY, had opened on the NASDAQ. Leafly is the most reliable website for finding and purchasing cannabis goods from licensed vendors across the world. More than 125 million people use Leafly each year to learn about cannabis and make online purchases from nearby shops. Customers can make wise purchasing selections thanks to the company’s extensive resources, which include technology and advertising services. This aids cannabis firms in luring in and keeping loyal clients. Thanks to the online cannabis delivery service that the company introduced when it began operating in California in May, customers may now make purchases directly from the company website.

Due to an increase in retailer and brand revenues, the company reported total sales of $12 million for the second quarter of 2022, up 13.8% from the second quarter of 2021. Additionally, the gross margin decreased to 88.0% from 88.5% in Q2 2021. The company experienced an adjusted EBITDA loss of $8.4 million as opposed to the adjusted EBITDA loss of $0.8 million in Q2 2021. The total revenue Leafly expects to generate in 2022 will be between $48.0 million and $51.0 million, which would be a midpoint 15% increase over 2021. The Adjusted EBITDA loss that Leafly currently expects ranges between $28.5 million and $26.0 million. In June, Leafly was added to the Russell 3000 and 2000 indices. In September, the company unveiled its most prominent and groundbreaking ad products to date.

LFLY Stock Performance

LFLY stock closed on September 28th at $0.7950 down 56.32% in the past month of trading. Currently, the stock has a range of $0.7510-$11.58 and is down 92.04% year to date. According to analysts at CNN Business LFLY stock has a median price target of $5.25 per share. In this case, this would represent an upside of 564.56% from its last trading price of $0.7950.

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WM Technology, Inc.

Weedmaps is an online retailer in addition to being a user and business directory for the cannabis industry. It belongs to the WM Technology, Inc. division. 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 offered a digital payment option in Ontario to broaden its product offering. Because curbside pickup, delivery, and cashless transactions were becoming more and more required, this benefited small enterprises. In 2021, the company purchased Sprout, a well-known cannabis CRM, and marketing platform.Weedmaps_Logo_Kit_Primary_Mark_Teal_Text_Blk_Smile_3x

There are already more than 18,000 company listings on Weedmaps in the US, and there are an estimated 13.9 million active users per month. Currently, the average monthly income per paying member is $3789. Weedmaps reports that second quarter revenues increased by 24% from the same period last year to $58.3 million. In addition, there were 17.4 million active monthly users on June 30, 2022, up 41% from the same day the year before. The gross profit of $54.4 million is a 93% margin rate. This is a 250bps margin decline from the prior year due to investments made in new client solutions, our WM AdSuite offering, and continued investments in data projects. It’s significant that net income increased to $19.8 million from $16.8 million in the same period last year. Adjusted EBITDA was down $0.6 million from the same period last year when it was $8.5 million.

MAPS Stock Performance

MAPS stock closed at $1.81 on September 28th up 4.02% in the last five trading days. Currently, the stock has a 52-week price range of $1.65- $15.16 and is down 69.73% year to date. According to analysts at CNN Business MAPS stock has a 12-month average price target of $4.50 per share. In essence, this would represent an upside of 147.93% from its last trading price of $1.81.

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Investing In Ancillary Cannabis Stocks For 2022

These top marijuana stocks reached new lows during the most recent trading sessions; when they start to recover, investors might find value in the stocks. To determine whether an asset is appropriate for your trading strategy and portfolio, you can review a company’s financial statements and news announcements. Making better trading decisions can be aided by an understanding of technical indicators and chart patterns. Active traders in October may have the opportunity to make short-term gains due to the current market volatility in the cannabis business.

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