While it is true that the cannabis sector is still in a phase of consolidation there are some cannabis companies which seem to have found some favour among investors. One of those is the cannabis technology company Leafbuyer Technologies Inc (OTCMKTS:LBUY), which also offers a marketing platform of its own.
Market Reaction
On Tuesday, LBUY stock moved down 5.50% to $0.0600 with more than 207k shares, compared to its average volume of 155K shares. The stock has moved within a range of $0.0570 – 0.0678 after opening trade at $0.0570.
Earnings Recap
Yesterday, the stock may have suffered from a selloff and declined by as much as 5%, but over the course of the past week the Leafbuyer stock is up by as much as 13%. Yesterday, the company was in focus after it announced that in the quarter that ended on September 30, 2021, its cash sales grew by as much as 30.5% year on year.
The Chief Executive Officer of Leafbuyer, Kurt Rossner, spoke about the company’s performance as well. He stated that the first quarter results were important due to two factors. One of those was the considerable rise in revenues year on year and the significant reduction in cash burn at the same time. Such a state of affairs can eventually lead to profitability and hence, that is an important thing for investors to keep in mind. Rossner went on to state that Leafbuyer is currently well placed to take advantage of the opportunities that are now available in the cannabis technology market.
Key Quote
Kurt Rossner, Chief Executive Officer of Leafbuyer, stated, “Our 1st quarter results reflect strong growth in revenues and a substantial reduction in cash burn. The company is well positioned going forward to exploit the increasing opportunity in the cannatech market. As we go into the 2nd quarter of fiscal 2022, we believe that strong demand will continue as we continue to expand our national footprint and expand our industry leading technology platform. Our revenue increase was primarily driven by strong demand for our loyalty platform and the value of an industry leading website, http://www.leafbuyer.com.”
Traders Review
LBUY stock is trading below the 20-Day and 50-Day Moving averages of $0.0684 and $0.0749 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.1215. The stock is up 9% over the past week.
