High-growth stocks have faced selling pressure in recent weeks, as the market prepares for the Federal Reserve to raise interest rates sooner and faster than previously expected. Meanwhile, cannabis stocks continue to take a hit as one of the worst performing sectors in the market this year.
WM Technology Inc (NASDAQ: MAPS) Falls in the corner of growth and cannabis, but CEO of WM Technology Chris Bells do not worry.
“When you think about the rising threat of inflation and what kind of a Fed might do, I think that’s the time when growth companies like us usually want to be flexible and show that they can be profitable. The good news is that we are already there,” Beals said Thursday at Benzinga Hour. for hemp.”
During its most recent earnings report, WM Technology reported quarterly earnings of 2 cents per share, which beat the estimate of 1 percent per share.
WM Technology is a provider of technology and software infrastructure for the cannabis industry, consisting of its B2C platform Weedmaps and its B2B program WM Business.
Bills described Weedmaps business as an extension Amazon.com Inc (NASDAQ:AMZN) – Like a cannabis market where users can browse a virtual mall for cannabis products. Companies using Weedmaps can promote their companies on the platform and appear more prominent in the market.
The WM Business aspect allows the company to group software offerings together to deliver a “business-in-a-box” product that complements the Weedmaps platform.
“For $500 a month, a cannabis retailer can start a business [and] participate in the market,” Beals said.
This is critical to the advertising reach of many cannabis companies because most of them are unable to advertise in other traditional ways as a result of legal restrictions.
Advertising effectiveness centers around conversion rate. According to WM CTO, Alphabet Corporation (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Ads offers a conversion rate of less than 1% while Amazon offers a conversion rate of approximately 10%, and Weedmaps leads a conversion rate of approximately 20%.
Biles went on to talk about company data collection, deliverability, 2021 highlights and more.
Watch the full interview here:
price action charts: WM Technology is trading as high as $22.24 and $6.14 over 52 weeks.
The stock closed 3.03% lower on Friday at $6.40.
Photo: Erin_Hinterland from Pixabay.