EXCLUSIVE: Is Weedmaps The Amazon’s Cannabis?


High-growth stocks have come under selling pressure in recent weeks as the market prepares for the Federal Reserve to potentially hike rates sooner and faster than previously expected. Meanwhile, cannabis stocks continue to be beaten this year as one of the worst performing sectors in the market.

WM Technology Inc (NASDAQ: MAPS) is on the corner of growth and cannabis, but WM Technology CEO Chris Beals don’t worry.

“When you think about the rising threat of inflation and the possible actions the Fed can take, this is the time when growth companies like us usually give in and show that they can be profitable. The good news is that we are already there. “, Said Beals on Thursday in the” Benzinga Cannabis Hour “.

In its latest earnings report, WM Technology reported quarterly earnings of 2 cents per share, beating the estimate of 1 cent per share.

WM Technology is a technology and software infrastructure provider for the cannabis industry, consisting of its B2C platform Weedmaps and its B2B software WM Business.

Beals called the Weedmaps business a Amazon.com Inc (NASDAQ: AMZN) -like cannabis marketplace where users can browse a virtual mall for cannabis products. Companies that use Weedmaps can advertise their companies on the platform and appear more prominent in the marketplace.

The WM Business page enables the company to bundle software offerings to offer a “Business-in-a-Box” product that complements the Weedmaps platform.

“For $ 500 a month, a cannabis retailer can basically get up and go [and] participate in the market, “said Beals.

This is vital to the advertising reach of many cannabis companies as most are unable to advertise in any other traditional way due to legal restrictions.

The effectiveness of advertising revolves around the conversion rate. According to the WM technology CEO Alphabet Inc Google Ads has a conversion rate of less than 1% and Amazon has a conversion rate of around 10%, while Weedmaps has a conversion rate of around 20%.

Beals went on to talk about the company’s data collection, deployment potential, highlights of 2021 and more.

You can see the full interview here:

MAPS price promotion: WM technology traded up to $ 22.24 and up to $ 6.14 over a 52 week period.

The stock closed 3.03% lower at $ 6.40 on Friday.

Photo: Erin_Hinterland from Pixabay.