MAPS - WM Technology: Big Opportunities Still Exist

2024-04-03 18:09:27 ET

Summary

• WM Technology, Inc., owner of Weedmaps, has struggled to gain momentum in the U.S. cannabis market due to limited retail store expansion.
• The company heavily relies on a few states, with over 50% of sales coming from California.
• The potential opening of the New York market with 1,000 stores could be a significant opportunity for WM Technology.
• The stock trades at 1x EV/S with huge multiple expansion once growth returns.

WM Technology, Inc. ( MAPS ) is probably the poster child for what has gone wrong in the U.S. cannabis market. The owner of Weedmaps, an online cannabis marketplace and SaaS operator, has struggled to gain momentum due to a lack of rational retail store expansion in the domestic cannabis space. My investment thesis remains ultra Bullish on the stock, especially if a new market like New York opens up....

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