Take Profits In WM Technology (Rating Downgrade)

Nov. 23, 2024 3:28 PM ETWM Technology, Inc. (MAPS) StockGRWG
(11min)

Summary

  • I am downgrading WM Technology (MAPS) from Strong Buy to Hold after its 66.6% rise in 2024, due to better alternatives and potential risks.
  • MAPS has seen revenue challenges but improved adjusted EBITDA, with a strong balance sheet and no debt, making it a low-risk investment.
  • Despite a low valuation and potential upside, risks like 280E taxation remaining or going away and helping MSOs more justify the Hold rating.
  • While MAPS remains cheap and not overly risky, there are better cannabis investment opportunities, and I no longer hold it in my model portfolio.
  • Looking for a helping hand in the market? Members of 420 Investor get exclusive ideas and guidance to navigate any climate. Learn More »

Making a trading decision: buy, sell or hold

cagkansayin

I have written many times about WM Technology (NASDAQ:MAPS), and today I am downgrading it from Strong Buy to Hold. The stock is still quite cheap in my view, but it is up 66.6% in 2024 so far. I am very

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This article was written by

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Alan Brochstein, CFA, is one of the first investment professionals to focus exclusively on the cannabis industry. Alan got his start as a financial professional in the securities industry in 1986, managing investments in institutional environments until he founded AB Analytical Services in 2007 in order to provide independent consulting to registered investment advisors. He is also the managing partner of New Cannabis Ventures, a leading provider of relevant financial information in the cannabis industry since 2015.

Alan has run the investing group 420 Investor, for investors interested in the publicly-traded cannabis stocks that he moved to Seeking Alpha in 2023, since 2013. As the leader of the investing group 420 Investor, Alan closely covers 23 stocks and shares investment news as it comes out, previews of their earnings reports and analysis of them afterwards. Other features of the group include: 2 model portfolios, 10 videos per week with chart analysis, 3 summary pieces weekly, a monthly newsletter, and chat for questions Learn More. He also offers a sub-service of 420 Investor, The Big Picture, which will help you stay on top of the cannabis sector!

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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