Stock on a high
New Age Beverages (NBEV) stock was up 8.7% at 8:03 AM EST today. The company announced on January 15 that it would hold an investor conference call on January 16 to provide a special business update on a new relationship. There’s been speculation about big players being interested in the company’s impending CBD-infused (cannabidiol-infused) beverage portfolio.
New Age Beverages stock rose 13.4% on January 14. The stock seemed to benefit from the positive sentiment in the hemp and cannabis space. The legalization of hemp in the US market has triggered a lot of interest in hemp-based products. Hemp is a form of cannabis that has a low level of THC (tetrahydrocannabinol), the psychoactive constituent of cannabis. On the other hand, CBD is nonpsychoactive in nature.
New Age Beverages and other stocks in the cannabis space also seemed to benefit yesterday from the news that leading cannabis company Canopy Growth (CGC) had been granted a license by the State of New York to produce hemp. A significant investment made by Constellation Brands in Canopy Growth is helping the latter to strengthen its presence in the cannabis space.
Big beverage players are showing a keen interest in investing in companies that are developing cannabis and hemp-based products for medical and recreational use.
As of January 14, New Age Beverage stock has risen 34.8% year-to-date compared to the 3.0% rise in the S&P 500 Index.
In 2018, New Age Beverages stock rose ~140%, significantly outperforming the broader market. The S&P 500 was down 6.2% in the year. In December, New Age Beverages announced the $85 million acquisition of Morinda Holdings, a maker of healthy beverages with a presence in over 60 countries. The acquisition is expected to help New Age Beverages capitalize on Morinda’s infrastructure and distribution network to boost the sales of its existing products and CBD-infused beverages. New Age Beverages’ CBD-based product portfolio is made up of CBD-infused sparkling water, CBD-infused green tea, and CBD-infused shots.