Weedmaps cuts guidance; Where will margins stabilize?

by | Nov 16, 2021 | Company Analysis, Earnings Report, Free | 0 comments

MAPS guided significantly below prior guidance for 4Q21 and 2022, blaming softness on a demand shift to the illicit market and slower than expected license issuances.

Our more detailed review and updated model for Premium Members can be found below.

While the long-term cannabis exposure growth narrative seems to be intact, the issue is that it appears the company will be generate lower margins for longer than expected as it grows requiring more acquisitions, and the growth will be slower.

The next catalysts will be: