Earlier this week, Bloomberg reported that Coca-Cola is in talks with the Canadian cannabis producer Aurora Cannabis on developing CBD-powered drinks. This created a buzz that Coca-Cola might swallow New Age Beverages as well. Beverage companies have recently been mulling on the cannabis-based drinks, which made pot stocks to gain significantly.
On Wednesday, the Denver, Colorado-based beer company announced that it would debut CBD infused drinks at the upcoming North American Convenience Store show (NACS), to be held at the Las Vegas Convention Center on October 8.
The global market for CBD will exceed $22 billion over the next four years, according to the Brightfield Group. The 2018 Farm Bill, which was recently passed by both the House and Senate, will possibly legalize CBD for farmers across the country and allow its sale nationally in all channels.
However, experts felt that the fundamentals are not good enough to support the surge in the stock and it is going up on mere speculations. Shares of New Age Beverages, which hit a fresh 52-week high during Friday’s early hours, plunged drastically and closed the day at $6.15, down 21.66%. It is expected that the stock will further extend its downfall in the coming week also.