WM Technology: Illicit Market Dilemma
- WM Technology posted dismal results for the 3Q of 2021.
- The company has a promising cannabis marketplace and SaaS business too, focused on the California market impacted by illicit sales.
- The stock is appealing at $8 due to long-term 30% growth rates, but investors should watch from the sidelines until the stock and business stabilize.
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The U.S. cannabis space has had a very tough few months and WM Technology (MAPS) now leads the pack with disappointing shareholders. The company was surprisingly hit by reduced demand in California due to a surge in the illicit market. My investment thesis remains Bullish on the stock over the long term, but WM Technology needs to find a bottom before shareholders buy more shares.
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Disclosure: No position mentioned. Please review the disclaimer page for more details.
Update - Jan. 28, 2022
WM Tech. is primed for a major comeback in 2022 after hitting lows below $5. The market is now pricing in no future growth in the cannabis space.