Musical company

What makes a bullish sign for this publicly traded cannabis tech company? The singer explains

Since the beginning of the year, WM Technology PLANS the stock lost 44.90%, while over the past five years it has plunged 64.73%.

The market and provider of technology solutions for the cannabis industry recently joined Russell 3000, Russell 2000 and Russell Microcap indices.

In June, the company announced a collaboration with Can, a marijuana-based beverage company founded by gay men, as part of a Pride 2022 campaign. The campaign celebrates the LGBTQ+ community with the release of its first-ever original song and music video – ‘Taste So Good’, a shout out a rallying cry and an anthem for a movement focused on radical inclusivity.

WM Technology has co-sponsored a new media campaign for Cann that features celebrities like Patricia Arquette, Sarah Michelle Gellar, RuPaul’s Drag Race Willow Pillow, Kornbreadand musicians Kesha and Hayley Kiyoko.

The analyst

Cantor Fitzgerald’s Pablo Zuanic retained an “overweight” rating on WM Technology stock, lowering the price target to $10.50 from $11.30.

The thesis

The stock was dragged lower by sentiment on the US cannabis stock, the analyst said, adding it could benefit from increased disclosure. “MAPS is listed on NASDAQ and two-thirds of the free float is held by institutional investors,” Zuanic wrote.

The company does not offer separate figures for the number of WM platform subscribers versus the average number of monthly paying customers (AMPC). Assuming the two are the same, this would result in lower subscription revenue per customer.

“The company said WM business subscriptions were 20% of sales in 1Q22 versus 23% in 1Q21; over that period, AMPCs increased by 28%, so revenue per customer would be down 5%,” Zuanic said..

The analyst added that they were excited about the company’s new services, such as CRM loyalty solutions, dynamic delivery, new payment features and machine learning, among others, but they weren’t. did not consider as “the impact on turnover”.

While the average monthly revenue per paying customer (AMPRPPC) has continued to improve, Zaunic believes it would be more helpful if the company disclosed how much AMPRPPC has increased year over year for customers who were in the system a while ago. a year, and how much he progressed sequentially.

“Existing customers spending more would be a bullish signal for the stock.”

price action

Shares of Weedmaps were trading up 3.74% at $3.61 per share Monday morning.

Benzinga Conference on the Cannabis Capital

Come meet Chris Beals, CEO of Weedmaps, in person, and many more like him at the Benzinga Cannabis Capital Conference in Chicago, September 13-14. Get your tickets HERE and reserve your place at the historic Palmer House HERE.

Photo by Hans Eiskonen on Unsplash