I’m a huge believer in being honest.
And, to be honest with you, cannabis stocks have – despite the hype – been an utter disappointment for years.
Since October 2018, Canada has largely botched is “nationwide legal weed” experiment. Most sales have remained in the black market. Meanwhile, U.S. cannabis legalization efforts were put on hold throughout most of 2019 and 2020.
Pot stocks – which soared into the Canadian legalization catalyst in late 2018 – have since plunged, with the ETFMG Alternative Harvest ETF (NYSEARCA:MJ) falling as much as 80% from late 2018 to early 2020.
But the tide is finally starting to turn for this “disappointing” industry…
In 2020, Canada has significantly eased cannabis market restrictions, dropped legal pot prices, and introduced new derivative products into the market – the sum of which is finally pulling demand from the black market into the legal channel.
For the first time ever, legal pot spending in Canada topped black market spending in the second quarter of 2020.
At the same time, U.S. legalization efforts are starting to gain serious momentum. During Election 2020, five states had cannabis legalization on the ballot. All five passed it, including some traditionally conservative states like Montana and Arizona. Not to mention, the House of Representatives just approved legislation to federally decriminalize marijuana.
If you’re keeping score, that means Canada’s legal cannabis market is on the cusp of finally coming into its own and the U.S. legal cannabis market is ready to come to life.
It doesn’t take a rocket scientist to connect those dots.
The global stage is set for the long overdue “Pot Stock Boom” to finally arrive – and for this disappointing industry to shift into a new, never-before-seen hypergrowth gear.
Today, we will show you how to play this big breakout in the cannabis market, by buying a freshly public technology company that is turning into the “Google of Marijuana.”
Providing the Necessary Technology Infrastructure to Organize & Streamline the Legal Cannabis Market
The cannabis market is messy.
Regulation is inconsistent. Dispensaries are few and far between. Brands are almost non-existent. Inventory is hit-or-miss. Product quality is all over the place. Pricing isn’t standardized.
It’s a lot like the internet back in the late 1990s.
You have a handful of dispensaries (dot com websites) and a bunch of prospective buyers (internet users), but no organized, streamlined infrastructure to connect the two in a consistent, standardized way.
Google started out in 1998 as an online listings marketplace which provided an organized, streamlined infrastructure to connect users to websites, and has since morphed into the information backbone of the internet.
Twenty years later, a small company by the name of WM Holdings is trying to do the same in the cannabis market.
Founded in 2008, WM Holdings – which is set to go public through a merger with special purpose acquisition company Silver Spike Acquisition Corp. (NASDAQ:SSPK) – operates Weedmaps, which is basically the Google of Marijuana.
Weedmaps is the world’s leading online listings marketplace for cannabis. It is a website which consumers use to discover and locate cannabis dispensaries, peruse product inventory and store information for those dispensaries, and even buy product from those dispensaries through delivery/pick-up orders.
So, more accurately, Weedmaps is the Google-meets-Amazon of marijuana. The novel platform connects prospective cannabis buyers, to cannabis sellers, in a streamlined, organized way, and even allows them to directly buy pot.
That’s a powerful value prop, because – as stated earlier – the cannabis market needs a Google-like platform to provide the necessary technology infrastructure to consolidate, organize, and streamline the discovery, buying, and selling processes.
Without it, the market will forever remain messy and inefficient. Consumers will forever have no idea how to buy weed. Retailers will forever have no idea how to boost distribution.
To that end, Weedmaps is a two-sided cannabis marketplace that provides enormous benefits to both sides. Buyers get all the information and access they need. Sellers get all the distribution and exposure they need.
Make no mistake. This company is the real deal.
When I asked folks in the cannabis world if they’ve ever used Weedmaps, some of the responses I got were: “Yeah, it’s pretty much the standard,” “It’s a very reliable resource,” and “May as well ask me if I’ve used Google.”
It’s not just the people I talked to…
Most habitual cannabis users use Weedmaps as a Google-type listings marketplace for cannabis. After all, the platform has over 10 million monthly active users.
Because of this huge user base, most dispensaries list on Weedmaps and use it as a critical sales/discovery funnel. Weedmaps has over 18,000 listings across every state in which cannabis is legal.
And so… the stage is set for marketplace effects to sustain Weedmaps’ market leadership… wherein its unmatched listings database attracts more buyers, which attracts more listings, which in-turn attracts more buyers… so on and so forth.
Even further, Weedmaps is only half of WM Holdings’ business. The other half is a back-end Software-as-a-Service platform dubbed WM Business that provides e-commerce selling tools to cannabis retailers – it’s basically Shopify designed specifically for cannabis shops.
In other words, WM Holdings is one-part future Google of Marijuana, and one-part future Shopify of Marijuana.
Yet WM Holdings is worth just $2.3 billion today…
That’s a steal for a company with this much disruptive long-term potential. Indeed, I see a pathway for WM Holdings to turn into a $20+ BILLION company one day.
So… if you’re looking for new, exciting, and explosive ways to play the cannabis market breakout… you should consider taking a position in WM Holdings stock today.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The New Daily 10X Stock Report: 98.7% Accuracy — Gains Up to 466.78%. InvestorPlace’s brand-new and highly controversial newsletter… is rocking the industry… delivering one breakthrough stock recommendation each and every trading day… delivered straight to your inbox. 98.7% Accuracy to Date — Gains Up to 466.78%. Now for a limited time… you can get in for just $19. Click here to find out how.