Today, Grove (NASDAQ:GRVI) is a stock that’s on investor’s radar. Indeed, the price action with GRVI stock is stunning right now. Currently, shares of this health and wellness company have soared more than 65% at the time of writing. This move also comes on very heavy volume, with the company approaching 100 times its average daily volume right now.
As a company focused on hemp, CBD, vitamins and other natural health products, Grove is a stock that has been an intriguing one to watch. A relative newcomer to the market, GRVI stock began publicly trading at the end of June. This company raised $11 million via an initial public offering (IPO) that has largely flown under the radar. This raise was done at $5 per share.
Since the company’s IPO, shares of Grove surged immediately but have since fallen toward their IPO price in recent months. However, today’s rise brings this stock close to its all-time high and suggests investors are very bullish on this stock.
Let’s dive into what’s driving investor enthusiasm in Grove right now.
GRVI Stock Soars After Company Launches Amazon Aggregation Division
Today, Grove announced the company has launched Upexi, a wholly owned division targeted at growing the company’s e-commerce presence. This brand will focus on acquiring more market share on Amazon (NASDAQ:AMZN) and other online marketplaces.
Indeed, the potential opportunity for growth in the e-commerce sector is staggering. With investors focusing on growth in the hemp and natural products segment, this is one avenue for growth many companies like Grove are attempting to tackle.
The company’s growth trajectory thus far has been enticing without this business. The company recently reported revenue growth of 250% year-over-year. Additionally, this company is also profitable, providing investors net earnings of 25 cents per share. For a company that was trading sub-$5 per share, there’s a real argument to be made that this stock is a value pick in a high-growth sector.
Today’s announcement appears to have cemented this view among many investors who have placed GRVI stock on their watchlist.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.