New Age Beverages Corp (NASDAQ: NBEV) is having yet another strong start to the trading session this morning, following up on recent gains that we’ve seen from the stock. However, if you’re looking for breaking news that’s causing the gains, you’re not going to find any. The gains are ultimately associated with excitement surrounding the CBD beverage space and the company’s coming launch of its products within the space. Today, we’ll talk about:
- Why NBEV stock is up today;
- what we’re seeing in the market; and
- what we’ll be watching for ahead.
Why NBEV Stock Is Up Today
As mentioned above, New Age Beverages is pushing further into the green today, following up on recent gains. The movement is ultimately the result of the company’s entrance into the CBD-infused drink space that’s just a couple of days away. Recently, NBEV announced that it would be unveiling its line of CBD drinks at an upcoming convenience store conference that starts on October 7, 2018.
However, there’s more to the excitement. After the company announced that it would be launching a line of CBD drinks, the DEA announced that it is reducing CBD from a Schedule I controlled substance to a Schedule V, dropping the substance from the maximum chance of abuse to minimum. This will likely broaden the audience for CBD beverages as the company heads for the launch.
Moreover, another thing that we’ve seen in the space since NBEV announced the coming launch of CBD-infused beverages, is several other companies hopping on the bandwagon, further validating the potential opportunity. India Globalization Capital (IGC), Youngevity International (YGYI) and others have announced the coming launch of their own CBD-infused beverages. This has led to investor excitement to the point where, when CBD is mentioned, stocks generally head up.
What We’re Seeing From The Stock
With the coming CBD-infused beverages launch just days away, investor excitement is running high and New Age Beverages is reaping the rewards. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:48), NBEV is trading at $8.57 per share after a gain of $0.46 per share or 5.67% 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 company’s coming launch of CBD-infused beverages and the revenue the company generates through the sales of these products. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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