And so, as an investor, you can take an indirect route to the cannabis universe with SSPK stock. The data indicates that WM Holding Company is thriving amid the emerging U.S. Yet, not every marijuana-market investment has to involve companies that touch the plant. There’s nothing wrong with investing directly in cannabis cultivators.
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Moreover, WM Holding Company stated that it’s on track to deliver $160 million in revenues as well as $35 million in EBITDA (earnings before interest, taxes, depreciation and amortization) for 2020.īut are people actually visiting and utilizing Weedmaps? With more than 10 million monthly active users and over 18,000 business listings, it’s fair to say that the platform is growing like a plant.Īnd as for WM Business, Silver Spike Acquisition Chairman and CEO Scott Gordon succinctly summed up the value proposition by calling it “the only comprehensive ‘business-in-a-box’ software solution for cannabis retailers.” The Takeaway As the company reports, over the last five years, WM Holding Company has expanded its revenues at an astounding compound annual growth rate (CAGR) of 40%. We’ll let the numbers do the talking here. So, has WM Holding Company been able to capitalize on the burgeoning cannabis market so far, despite its indirect angle into this market? cannabis market is expected to double over the next five years. And according to WM Holding Company, the U.S. The company operates a California-based online cannabis marketplace known as Weedmaps.Īlso, WM Holding Company is the parent company of WM Business, a software-as-a-service (SaaS) provider targeting to cannabis retailers and brands.Īs the company states, WM Holding Company “solely provides software and other technology solutions and is non-plant touching.” So again, if you’re seeking an indirect approach to cannabis-market investing, this may be as good a candidate as any.Īt the same time, Weedmaps and WM Business could prosper if the broader cannabis industry expands.
In other words, it’s basically a cannabis technology platform. Founded in 2008, this company bills itself as “the leading technology and software infrastructure provider to the cannabis industry.” Without further ado, let’s get into the nitty gritty of WM Holding Company. Indirect Entry Into the Cannabis Universe 15, SSPK shares settled at $18 and change. And at the close of the market session on Jan. It wasn’t until December that the stock made a big move to the upside.Īmazingly, SSPK stock surged as much as 23% in pre-market trading as the merger deal with WM Holding Company was announced. Thus, it shouldn’t be too surprising that SSPK stock stayed close to $10 throughout most of 2020. It’s normal for pre-deal SPAC stocks to hover near the $10 level for a while as the investing community waits to find out which company the SPAC intends to merge with. If so, then let’s take a deep dive into the ins and outs of SSPK stock. Perhaps a hands-off approach to cannabis industry investing might appeal to you. Therefore, you won’t have to worry about investing in a company that actually touches the plant. However, WM Holding Company isn’t a marijuana cultivator like some of the more famous companies in the sector. That fact might scare off some cautious investors. Right now, I’ll offer you a little tease by saying that WM Holding Company operates within the broader cannabis sector.
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