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.

Coca-Cola may soon roll out marijuana-based drinks

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top