New Age Beverages Corp (NASDAQ: NBEV) is having an overwehlmingly rough start to the trading session this morning. However, if you go digging, you’re not going to find any press releases or SEC filings that provide a reason for the declines. Nonetheless, we believe that we know why it’s falling. Today, we’ll talk about:
- Why NBEV is falling;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead
NBEV Tumbles As Excitement Fades
As mentioned above, New Age Beverages is having an incredibly rough start to the trading session this morning, but no news has been released. The reason for the declines started a while ago when the company announced that it would be launching CBD-infused beverages. At the moment, investor demand for cannabis related stocks is flying high. So, it only made sense that the announcement led to gains.
For the weeks to come, NBEV would continue upward as investors awaited the launch of these CBD-infused beverages, which took place over the weekend at a convenience store trade show. As investors waited, excitement continued to hit home, leading to session after session in the green.
Now, the excitement has somewhat faded. With the drinks launched, the next thing investors have to look forward to is sales reports. So, after the launch of the beverages, it seemed as though investors and traders alike are taking the profits that they earned from NBEV. Nonetheless, this slump may not last long. After all, if sales are strong, the stock could see monumental gains from here, suggesting that today’s declines could be an opportunity to get in at a discount.
What We’re Seeing From The Stock
As excitement fades, New Age Beverages is having a rough day. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. At the moment (9:53), NBEV is trading at $7.48 per share after a loss of $0.99 per share or 11.65% 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 NBEV. In particular, we’re interested in following the story surrounding the comapny’s new lineup of CBD-infused beverages and the revenue the company generates through the sale of these drinks. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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