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.
Tyson Foods Inc. (NYSE: TSN) reported first quarter 2023 earnings results today. Sales rose 2.5% year-over-year to $13.2 billion. Net income attributable to Tyson was $316 million, or $0.88 per
Apple Inc. (NASDAQ: AAPL) this week reported its first revenue decline in more than three years, even as the high inflation continues to squeeze customers’ spending power. Sales of the
Chipmaker Qualcomm, Inc. (NASDAQ: QCOM) has reported lower earnings and revenues for the first quarter of 2023. The company also provided guidance for the second quarter of 2023. At $9.5