Categories LATEST, Other Industries
After the initial cheer, New Age Beverages experience a hangover
New Age Beverages (NBEV) has been in the limelight this week, especially after its shares skyrocketed 79% Thursday with a volume of 126.6 million. Rumor mills had earlier this week suggested that beverage giant Coca-Cola (KO) might take over New Age Beverages. Adding to this, the announcement of launching cannabidiol (CBD) infused drinks by New Age Beverages made the stock to move up dramatically.
From last Friday’s closing price of $1.59, shares of the company had a stupendous gain of almost 400% and closed at $7.85 during Thursday’s regular trading session. The stock continued its bull run during the early hours of trading on Friday and turned to red in the morning trading session.
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.
Most Popular
Earnings Preview: What to look for when Netflix (NFLX) reports Q4 2025 results
Netflix, Inc. (NASDAQ: NFLX) is expected to report Q4 results on January 20, amid expectations for strong revenue and earnings growth. The company is navigating a shifting streaming landscape where
What to look for when United Airlines (UAL) reports its Q4 2025 earnings results
Shares of United Airlines (NASDAQ: UAL) stayed red on Thursday. The stock has gained 15% over the past three months. The airline is scheduled to report its earnings results for
Infographic: How Constellation Brands (STZ) performed in Q3 2026
Constellation Brands, Inc. (NYSE: STZ) reported net sales of $2.22 billion for the third quarter of 2026, down 10% year-over-year. Organic net sales were down 2%. Net income attributable to
Comments
Comments are closed.