New Age Beverages Corp (NASDAQ: NBEV) is falling hard in the pre-market hours this morning, following up on the declines that we saw on the stock yesterday. While the company has released no news, there is a very understandable reason for the declines, and it all has to do with Coca-Cola (KO)’s earnings report. Today, we’ll talk about:
- Why NBEV is falling;
- why the declines may be an opportunity;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s Why NBEV Is Falling
As mentioned above, New Age Beverages isn’t having the best of times in the market today, but there’s no news that has been released that would be the cause for such declines. So, what’s the deal? The answer is relatively simple.
It all started a few weeks ago when rumors broke that Cocal-Cola had an interest in acquiring the company in order to break into the CBD-infused beverages market. Since then, investors have been waiting to see if there was any validity to the rumors, and today, they found out that there wasn’t, at least not that KO is leading on.
Ultimately, investors looked to the KO earnings report that was released this morning for any clues to either confirm or debunk the rumors that the company will be acquiring NBEV. Unfortunately, I read the report myself and was unable to find any indication of interest to acquire the company. So, with the acquisition rumors being all but debunked, NBEV investors are sending the stock tumbling.
Why The Declines May Be An Opportunity For Gains
In the recent run on New Age Beverages, it became clear that excitement surrounding this stock can lead to tremendous movement. With that said, in two weeks, the company will be releasing an earnings report of its own, and while I don’t expect that the financial data will blow away expectations, there is something in the report that can lead to serious excitement.
Since NBEV launched its CBD-infused drinks at a convenience store trade show, we haven’t heard much. That can mean either one of two things. First and foremost, the launch didn’t go well, which I don’t believe to be the case. What is more likely the case is that the company is holding the information close to the vest until its earnings report is released.
Along with the report, I’m expecting that NBEV will release information with regard to pre-orders of its beverages and potential growth in the CBD-space. Should this data be positive, the stock could see dramatic gains.
What We’re Seeing From The Stock
Unfortunately, today isn’t the best of days for New Age Beverages in the market as investors weigh the lack of interest noted in the KO earnings report. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:28), NBEV is trading at $3.55 per share after a loss of $0.17 per share or 4.57% 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 company to see what gems are hidden in the coming earnings report. Nonetheless, we’ll keep a close eye on the news and continue to bring it to you as it breaks!
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