Net Element Inc (NASDAQ: NETE) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced the launch of a new payment service, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The new payment service;
- what we’re seeing from NETE stock as a result; and
- what we’ll be watching for ahead.
NETE Climbs On Payment Service
As mentioned above, Net Element is having an incredibly strong start to the trading session this morning after announcing the launch of a new service. In a press release issued early this mroning, the company said that it has launched a secure and compliant payment processing offering aimed at the legal cannabis industry.
As legal cannabis continues to grow around the world, NETE sees an incredible opportunity to generate growing revenue. In fact, experts are predicting that by 2020, the cannabis industry in the United States alone could reach $20 billion. However, due to the taboo nature of cannabis and CBD, many payment processing services will not allow for their users to run transactions like this through their systems. Nonetheless, the company now has created an offer to fill a void in a fast growing industry.
In a statement, Vlad Sadovskiy, President of Integrated Payments at NETE, had the following to offer:
We are excited to launch a legal cannabis payment acceptance solution to meet the needs of sales partners and merchants for this emerging market… Addressing the needs of our merchants is our No. 1 priority and we work closely with various vendors to bring our merchants state-of-the-art payment acceptance solutions.
What We’re Seeing from The Stock
One of the first lessons that we learn when we start to dig in the market is that the news leads to moves. In the case of Net Element, the news proved to be overwhelmingly positive. This new payment system will likely be in high demand among head shops and others in the cannabis industry, generating revenue growth for the company. So, it comes as no surprise that excited investors are sending the stock screaming for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:18), NETE is trading at $7.12 per share after a gain of $3.12 per share or 78.13% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NETE. In particular, we’re interested in following the story surrounding the new payment system and the revenue the company generates through it. Nonetheless, we’ll continue to keep an eye on the news and bring it to you as it breaks!
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