$MAPS WEEDMAPS – THE AMAZON OF WEED, 40% Rev CAGR, 96% GM and SAFE ACT WILL DOUBLE REVENUES🥦🥦🥦👨🚀👨🚀🚀🚀
All right you fellow autists, Weedmaps will be listed as $MAPS on the Nasdaq today.
The company provides saas advertising and e-commerce solutions to dispensaries across the country with 96% gross margins 40% CAGR rev growth. What’s interesting is that newly legalized states like NY and VA are not included in their forecasts. NY is also likely to be quite similar to CA, the companies largest revenue driver. What should get the apes most excited though is that the company currently facilitates e-commerce on their site but does not charge a take rate because of regulations. If schumer can pull his head out of his a$$ and at least pass the safe banking app the immediate impact on revenues would be massive.
Any who, even without the safe act the company is attractively valued trading at ~7x 2022 sales. One ape on twitter called out that it may but may run into some technical issues following the merger close on the 10th as on that date pipe investors become unrestricted and can then short their positions starting to box in their gain until their pipe shares become registered…. see the helpful link below:
10% of the stock is sold short and additional short pressure from pipe investors could lead to a nice squeeze as the companies financial profile and growth is compelling, abundant industry tailwinds should drive interest and there are a large number of fundamental investors in the name (orbimed, bloomtree, senvest, fred alger, etc.). This may not occur at all and the stock could just run but it will be a dynamic to monitor during the first few days of trading.
while the company’s revenue driver is advertising (and hopefully soon a GMV take), weedmaps also offers software in a box solutions to companies to allow for pickup orders or delivery in certain geographies. The data seems to support that weedmaps is more ecomm like than simply "google maps" for weed.
avg session length:
goog maps: 53 seconds
leafly: 2 min 41s
Yelp: 2 min 52s
seamless: 4M 55s
WeedM (similar web) 5M 6s
Etsy: 6M 31s
eBay: 6M 42s
WeedM (mgmt): 8M 0s
With legalizations occurring across the country the company is well positioned to hit their forecasts (NY VA etc isn’t even included in their projections). Given their scale they should be able to outcompete and potentially acquire competitors down the road as they continue to grow. The company is already EBITDA positive and in recent filings the company indicated that they are maintaining their 2021 guidance of $200M.
With TLRY and weed stocks mooning this is an absolute no brainer potential multibagger. The SAFE/ MORE act will only fuel further interest.
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June 16, 2021 at 05:22AM