If you’re looking for the next big marijuana stock to buy, look no further than Canada. The country is set to become a global leader in cannabis production and consumption by 2021, according to Arcview Market Research.
The best marijuanas stocks 2021 reddit is a website that contains information about the next big pot stock of 2021. It has sections for the top 5, 10, and 20 stocks to invest in.
Getting in on the ground floor of the cannabis business may be a fantastic strategy to put yourself up for long-term success. Purchasing shares in a freshly listed marijuana business may be hazardous, but it will allow you to increase your potential profits. Ascend Wellness, Verano Holdings, and WM Holdings (NASDAQ:MAPS) are among the bigger marijuana firms to begin trading on major exchanges this year, with market values of over $1 billion. Leafly is another cannabis startup to keep an eye on in the fourth quarter. This well-known industry brand is expected to be one of the largest names in the business to go public before 2021 comes to a close, with some remarkable predictions that include revenue possibly doubling within a few years.
What makes Leafly so special?
Leafly is similar to Weedmaps in that it assists marijuana companies in advertising and selling their goods. Because it isn’t a business that works with plants, it may freely trade on the Nasdaq. (Due to the government prohibition on marijuana, businesses that actually produce it are unable to trade on a major U.S. exchange.) Leafly offers over 1.3 million user ratings and a database of over 5,000 strains. It also aspires to be a well-known brand in the business and a reliable source of marijuana-related expertise and information.
It boasts that half of its customers make purchases on their first visit, and that half of the merchants that utilize its platform make a purchase within a week of signing up. Retailers account for the majority of the company’s income (80%); the rest comes from individual companies, which make money via subscriptions and advertising.
Leafly, on the other hand, is just scratching the surface in terms of potential. Despite the fact that it claims to have 55 percent of legal cannabis merchants on its platform, the firm thinks there is still potential for expansion, particularly as the sector grows as a result of legalization. It is expected to increase at a compounded annual growth rate of 51.9 percent from fiscal 2021 to fiscal 2024, reaching more over $150 million in annual sales by 2024. That’ll be more than three times the $43 million in sales it anticipates in 2021. Leafly also aims to make a profit of slightly under $15 million by 2024. It will stay in the red till then. It expects a high gross margin of 88 percent and an operational profit of 25 percent of sales in the long run.
Weedmaps, on the other hand, aims to generate $440 million in sales by 2023 and make $130 million in profits before interest, taxes, depreciation, and amortization (EBITDA). Although EBITDA and operating income are not always the same, they may be quite similar in many companies.
SPACs are being used by cannabis businesses.
Investors are sure to have heard of special purpose acquisition firms by now (SPACs). They assist businesses in going public via mergers, as opposed to the conventional IPO method, in which a company goes public on its own — a lengthier and more complicated process. This year, several businesses have gone public through a SPAC. Weedmaps, one of the most recent cannabis technology companies, has merged with Silver Spike Acquisition Corp.
Leafly is merging with SPAC Merida Merger Corp I to go public. Merida will utilize Leafly’s name as well as the ticker symbol “LFLY” after the deal is completed. The transaction is expected to complete this quarter, according to the businesses.
Should you put money into Leafly?
Leafly’s company seems to be promising, if it can meet its projections. Marijuana businesses need a means to market and publicize their operations, and firms like Weedmaps and Leafly help them do so. Weedmaps, on the other hand, is probably a safer investment right now since it is already profitable on an EBITDA basis.
Plant-touching marijuana companies, on the other hand, are quite uncommon. Leafly is a cannabis investment that you may add to your portfolio if you want to increase your exposure to the industry. If you’re patient and ready to wait for the sector to develop and spread internationally, both Weedmaps and Leafly have great long-term potential and can offer some remarkable profits.
The best stocks to invest in 2021 are stocks that are expected to experience a significant increase in value. These companies include the best marijuana stocks, which have been experiencing an upsurge in demand recently.
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