At the recent Cannabis Market Spotlight: California event in Anaheim, DJ Saul, CEO of B&Y Ventures, shared his perspective on the role of genuine connections in celebrity-backed cannabis brands. Representing Khalifa Kush, the cannabis line co-founded by Wiz Khalifa, Saul spoke about how an authentic brand connection can set companies apart in a competitive industry.
Building Trust Through Authentic Branding
“Khalifa Kush has the most authentic celebrity story in the space,” Saul said, suggesting that this foundation has helped the brand resonate with consumers who value a true connection between the brand and its namesake.
Unlike many celebrity-driven ventures, Khalifa Kush reflects Khalifa’s personal values and public image, building a sense of trust and relatability with fans and customers.
Lessons from the Industry
During the panel, Saul also pointed to Planet 13‘s approach to celebrity involvement as a meaningful example. Lee Fraser of Planet 13 described their focus on bringing celebrity partnerships to life in real, engaging ways. Saul agreed that this approach helps create a strong and genuine connection with audiences.
Reflecting on audience reactions during the discussion, Saul noted that “a lot of heads [were] nodding out there,” indicating broad agreement among attendees about the importance of real connections in brand development.
Saul’s comments highlight an approach that many in the cannabis industry are now focusing on—authentic celebrity-driven branding that goes beyond mere endorsements.
Khalifa Kush’s model suggests that genuine, aligned involvement from a brand’s celebrity founder can foster loyalty and credibility, distinguishing it from others in the field.
Image: Wiz Khalifa Duki
California, known for its ideal climate and rich cannabis history, is regarded as one of the best places to grow weed. The state has also led U.S. cannabis reform, from the first legalization ballot initiative in 1972 to becoming the first state to legalize medical marijuana in 1996. A decade later, in 2016, it legalized recreational use. Since then, California, home to the world’s largest cannabis market, has faced significant challenges.
Small pot farms in regions like the Emerald Triangle have struggled to survive due to oversupply and falling prices, writes SF Gate. Issues like inappropriate labeling, lab shopping, and a pesticide scandal have also plagued the industry. While legal cannabis sales decline, cartel operations thrive in national parks.
To explore these challenges, we spoke to Josh Wurzer, chief compliance officer and co-founder of SC Labs, one of the first to raise concerns about pesticide testing. “From the beginning, our goal has been to be the most science-focused testing laboratory in the cannabis industry,” Wurzer told Benzinga.
“We are committed to promoting safe cannabis consumption by ensuring the quality and safety of cannabis cultivation and product manufacturing. Our passion for the plant drives us to support research into its chemical composition, exploring how these compounds influence the flavor, aroma, and unique effects of different strains.”
Pesticides, Inaccurate Labeling And Lab Shopping
In 2023, there was a cannabis recall after an investigation found dangerous pesticides in popular weed products and a lawsuit against cannabis lab shopping. According to Wurzer, who is also a board member of multiple cannabis industry organizations, including the U.S. Pharmacopeial Convention (USP), lab shopping has become a significant issue within the testing industry.
“This problem primarily stems from the fact that the THC concentration in cannabis and cannabis concentrates has become a key factor in determining the wholesale price of these products. This creates a strong incentive for growers and manufacturers to seek out laboratories that report the highest THC concentrations, regardless of the accuracy of the data,” he said.
He added that cannabis is vulnerable to pests like spider mites and fungal pathogens like powdery mildew. With no approved pesticides and strict testing requirements, managing these threats is challenging and expensive. Some producers bypass detection by using lenient labs.
While regulators are in charge of overseeing the quality of lab testing, growers and producers are those financially impacted by unfavorable results, Wurzer adds. Without the enforcement of penalties for these actions, “unethical behavior is incentivized.”
“I certainly don’t envy our regulators,” he said. “Many of them are working hard to do the best they can within the constraints of the current rules and restrictions. It’s no small task to try and organize an industry that has been so fragmented, especially when so many people are struggling financially, and there are numerous competing interests at play.”
Read Also: Mold, Lead, E.Coli And Other Deadly Contaminants Found In 90% Of Illegal Cannabis Samples In UK
Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.
Cannabis Will Likely Always Be Affected By HLVd
In 2019, a hop-latent viroid (HLVd) was identified as an infectious pathogen devastating cannabis farms in California by infiltrating plants and ruining entire crops just before they’re ready for harvest. According to a 2021 estimate, it affected 90% of California cannabis crops.
Wurzer explained that cannabis will likely always be affected by HLVd, the same way that potato farmers are continuously plagued with the Mosai Virus. However, the cannabis industry has developed a support system that enables growers to mitigate HLVd’s effects. This has enabled the breeding of resistant strains, improving hygiene practices in nurseries and conducting regular monitoring through testing.
Fixing Some Of The Challenges
In view of HLVd, dangerous pesticides and inaccurate labeling, the question is: have California consumers lost trust in the state’s legal cannabis products? This could be one of the reasons why the illicit market is still thriving; consumers are turning to cheaper products. Wurzer notes that the price difference between regulated and black markets is significant.
Another challenge comes from the hemp market and the confusion about what is and is not legal. To save the industry, regulators need to address the competition from intoxicating cannabinoids in the hemp market, which is currently mostly unregulated and flooded with dangerous synthetic chemicals, he explains.
Wurzer suggests reducing taxes and regulatory burdens on growers and producers without compromising the quality and safety of products. Profiteers selling unsafe products need to be disincentivized, and ultimately, “the path forward must include federal legalization.”
Finest Cannabis In The World
Wurzer believes there’s no other place on earth that can match the quality of cannabis grown in California, and “as long as that remains true, we have a real opportunity to fix this mess.”
Once cannabis is allowed to cross state lines, California will have a significant advantage, he adds. “No one will want to purchase inferior synthetic THC flowers from other states when they can get high-quality sun-grown flowers from Mendocino, Humboldt, and Santa Cruz. I’ll confidently put our sun-grown flowers up against the best indoor cannabis produced anywhere else in the world, and I have the lab data to back up those claims.”
In April 2023, SC Labs partnered with another major laboratory network to develop the Trust in Testing Certification a set of enhanced national standards for cannabis testing. This program is “designed to address some of the gaps in state regulations that have allowed unscrupulous labs to produce questionable data or manipulate the system,” Wurzer details. There’s been a significant interest from retailers looking for a trustmark that provides confidence in the products they offer. SC Lab’s goal is to establish a group of laboratories dedicated to doing things the right way.
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Photo: Courtesy of real_content via Shutterstock
Each week, Benzinga’s Stock Whisper Index uses a combination of proprietary data and pattern recognition to showcase five stocks that are just under the surface and deserve attention.
Investors are constantly on the hunt for undervalued, under-followed and emerging stocks. With countless methods available to retail traders, the challenge often lies in sifting through the abundance of information to uncover new opportunities and understand why certain stocks should be of interest.
Here’s a look at the Benzinga Stock Whisper Index for the week ending Nov. 22:
Delta Air Lines (NYSE:DAL): Reader interest in Delta comes after the company hosted an investor day in New York. Among the items shared at the investor day were goals of mid-teen operating margins, 10% average annual EPS growth and $3 billion to $5 billion in annual free cash flow over the next three to five years.
Delta could also be seeing interest with the new White House administration being ushered in. Delta CEO Ed Bastian recently said President-elect Donald Trump could provide a “breath of fresh air” for the airline sector after years of “overreach.” The Biden administration passed various regulations that protected airline consumers, including automatic refunds after canceled flights and a requirement for airlines to disclose all additional fees and taxes upfront.
Delta also announced it will start serving Shake Shack burgers to first-class passengers on some flights.
The carrier’s shares were down over the past week, but remain up over 50% year-to-date. The Benzinga Pro chart below shows the five-day performance.
Nike Inc (NYSE:NKE): Bill Ackman’s Pershing Square has increased its bet on the apparel company. After taking a 3 million share stake in the second quarter, a new filing revealed that Ackman added 13 million shares in the third quarter. His firm now owns around 1.3% of the company. Nike shares trade near 52-week lows after first-quarter financial results saw revenue miss analyst estimates and analysts weigh how quickly a new CEO can help turnaround the company.
“A comeback at this scale takes time, but we see early wins – from momentum in key sports to accelerating our pace of newness and innovation,” Nike CFO Matthew Friend said after the Q1 results. “Our teams are energized as Elliott Hill returns to lead Nike’s next stage of growth.”
Investors could also be closely watching Nike stock to see how big of an impact Trump’s promise to increase tariffs on other countries could hurt the company.
Nike shares were up slightly on the week and remain down over 27% year-to-date in 2024.
Autodesk Inc (NASDAQ:ADSK): The software company is seeing strong interest from Benzinga readers ahead of third-quarter financial results scheduled for Tuesday, Nov. 26. Analysts expect the company to report quarterly revenue of $1.56 billion, up from $1.41 billion in last year’s third quarter. Analysts also expect quarterly earnings per share of $2.12, up from $2.07 in last year’s third quarter.
Autodesk has beaten analyst estimates for revenue and earnings per share both in five straight quarters. Over the last 10 quarters, Autodesk has beaten analyst estimates for revenue eight times and earnings per share eight times. The company said that it was focusing on disciplined execution and seeing GAAP margins among the best in the sector.
Autodesk CEO Andrew Anagnost said these factors “will deliver sustainable shareholder value over many years.”
Some recent analyst ratings and price targets are listed below:
- Wells Fargo: Maintained Overweight rating, raised price target from $340 to $350
- Morgan Stanley: Maintained Overweight rating, raised price target from $320 to $375
- KeyBanc: Maintained Overweight rating, raised price target from $325 to $330
- Scotiabank: Initiated with Sector Outperform rating, $360 price target
- Baird: Maintained Outperform rating, raised price target from $305 to $330
- Stifel: Maintained Buy rating, raised price target from $320 to $340
- Barclays: Maintained Overweight rating, raised price target from $310 to $355
Autodesk shares were up 6% over the last five days and are up around 35% year-to-date in 2024.
Coinbase Global (NASDAQ:COIN): The cryptocurrency company is seeing strong interest as Bitcoin (CRYPTO: BTC) continues to smash through new all-time highs and near the $100,000 level.
The rising valuation of other cryptocurrencies could also help offset concerns from Coinbase’s recently reported third quarter, which saw revenue and earnings per share miss Street estimates. Trading volume and transaction revenue were down 18% and 27% quarter-over-quarter respectively in the third quarter.
The pro-crypto stance of the incoming Trump administration also boosted interest in cryptocurrency-related companies like Coinbase.
Coinbase stock was up on the week, but trailed the 9.5% gains of Bitcoin. Coinbase stock is up 93.5% year-to-date in 2024, also trailing the year-to-date 122.5% gains for Bitcoin.
Blackstone Inc (NYSE:BX): The world’s largest alternative asset manager announced plans to acquire a majority stake in Jersey Mike’s, a fast-casual restaurant brand.
While Blackstone won’t IPO Jersey Mike’s anytime soon. Still, it could benefit from the likelihood that more big IPOs are expected in 2025.
Reuters reports that medical supply firm Medline, which is partially owned by Blackstone, seeks a $5-billion IPO.
Stay tuned for next week’s report, and follow Benzinga Pro for all the latest headlines and top market-moving stories here.
Read the latest Stock Whisper Index reports here:
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New polls of Benzinga readers show they don’t think the Department of Justice should break up Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) or target other Magnificent 7 stocks.
What Happened: A recent investigation by the Department of Justice found prosecutors telling Alphabet it needs to divest the Google Chrome browser to break a monopoly on online search.
A poll of Benzinga readers showed 64% of respondents saying that Alphabet should not be split up. While the Department of Justice’s probe into Alphabet likely means some changes will be made in the future, attention could quickly turn to other big technology companies after the Google parent.
“Which other Magnificent 7 stock should be broken up?” Benzinga asked.
The results were:
- None of them: 51%
- Amazon.com Inc (NASDAQ:AMZN): 14%
- Meta Platforms (NASDAQ:META): 12%
- Microsoft Corporation (NASDAQ:MSFT): 11%
- Apple Inc (NASDAQ:AAPL): 5%
- Tesla Inc (NASDAQ:TSLA): 5%
- NVIDIA Corporation (NASDAQ:NVDA): 2%
Around half of the poll respondents said no other Magnificent 7 stocks should be broken up. Of the people who picked a stock to be broken up, Amazon led the way with 14% of the vote.
Why It’s Important: The desire to split up Amazon likely comes from investors wanting to have access to invest in Amazon Web Services, also known as AWS, a pure-play cloud platform.
In the most recent third-quarter financial results, Amazon reported the following revenue by business segment:
- North America: $95.5 billion, +9% year-over-year
- International: $35.9 billion, +12% year-over-year
- AWS: $27.5 billion, +19% year-over-year
This trend is a common occurrence of AWS growth outpacing the other business segments. While AWS is the smallest of the three main reporting segments, the cloud segment is seeing strong growth and getting closer to outpacing international revenue.
AWS is also the larger driver for Amazon’s operating profit. Of the company’s third-quarter total of $17.4 billion in operating profit, $10.4 billion came from AWS.
Meta Platforms came in second of the companies in the poll, which could be related to investors wanting access to the companies social media platforms like Facebook and Instagram or access to the WhatsApp messaging service.
Meta could find itself a target of the new White House administration with both Donald Trump and J.D. Vance speaking out about the company previously.
“I think that Google and Facebook have really distorted our political process. And I think a lot of my friends on the left would agree with me, but they might disagree with me directionally about how to fix that problem,” Vance said earlier this year. “We have to stop the craziness, and I think one way to do it is to stop the way that these companies control the flow of information in our country.”
While many investors said Magnificent 7 stocks shouldn’t be broken up, analysts see the move potentially unlocking value based on sum-of-the-parts valuations.
Read Next:
The study was conducted by Benzinga from Nov. 21 through Nov. 22, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 57 adults.
Photo: Shutterstock
A poll of Benzinga readers found that they don’t believe Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) should be broken up. This comes as the Department of Justice (DOJ) suggested divesting the Chrome browser to break a search monopoly.
What Happened: Google parent Alphabet has long been a target of potential antitrust investigations due to the company’s large market share in online search.
The DOJ recommended that Google share search data with competitors to foster fair competition. The department also said Google should consider selling its Android operating system.
“Google’s unlawful behavior has deprived rivals not only of critical distribution channels but also distribution partners who could otherwise enable entry into these markets by competitors in new and innovative ways,” the DOJ said in a statement.
A recent poll of Benzinga readers found that they don’t believe Alphabet should be split up.
“Should the Department of Justice break up Alphabet (Google)?” Benzinga asked.
The results were:
- Yes: 36%
- No: 64%
While the DOJ is targeting Chrome as the potential unit to be divested, Benzinga readers have other preferences.
“Which part of Alphabet would you most want to invest in if it splits up,” Benzinga asked.
The results were:
- YouTube: 43%
- Google Search: 31%
- Android: 17%
- Chrome: 9%
Benzinga readers ranked YouTube as the top choice for a standalone unit, while Chrome was the least favored.
Why It’s Important: While Alphabet likely does not want to split up or sell any of its units, investors could end up the winners according to analysts.
Jefferies analyst Brent Thill recently said that a breakup or business separation could be good for shareholders.
“We don’t believe a full breakup would happen. Even if it did, it would be good for shareholders because the sum of the parts is greater than the whole,” Thill told Yahoo Finance.
Needham analyst Laura Martin has been emphasizing for months that a forced breakup of Alphabet could lead to a significantly higher valuation.
“We believe that GOOGL is worth more in pieces than together, so we welcome regulators’ attempts to break up GOOGL,” Martin said in a new investor note.
A break-up could put a spotlight on the valuation of video platform YouTube, Martin said.
“We calculate that YouTube would be valued between $455B-$643B if separately traded.”
Martin said Alphabet shares would likely trade higher if the company breaks up because investors would be willing to pay more for “pure-play assets,” more data points could be publicly shared, and employees would receive shares in business lines they directly impact.
Martin has a Buy rating on Alphabet and price target of $210.
GOOG Price Action: Alphabet stock trades at $167.81 Friday versus a 52-week trading range of $129.40 to $193.31. Alphabet stock is up 21.3% year-to-date, trailing the 25.6% gain of the SPDR S&P 500 ETF Trust, which tracks the S&P 500.
Read Next:
The study was conducted by Benzinga from Nov. 21 through Nov. 22, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 88 adults.
Photo: Shutterstock
BDSA‘s October 2024 data highlights Maryland as the fastest-growing state for cannabis sales, with a year-to-date (YTD) increase of 57.8%, totaling $942.2 million.
Maryland’s impressive performance within BDSA’s tracked markets cements its place as a key emerging state in the cannabis industry.
Ohio followed with a 30.9% growth, reaching $522.6 million, while New Jersey achieved a 24.6% increase, amounting to $805.7 million in YTD sales.
Green Thumb Industries (OTC:GTBIF), Curaleaf Holdings (OTC:CURLF), Trulieve Cannabis Corp. (OTC:TCNNF), Cresco Labs (OTC:CRLBF), and Verano Holdings (OTC:VRNOF) are publicly traded multi-state operators with active operations in both Ohio and Maryland, supporting the cannabis industry’s growth in these states.
- Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. You can’t afford to miss out if you’re serious about the business.
Struggling Markets
States with established cannabis markets are grappling with significant downturns. Arizona saw a 12.9% decrease in YTD sales, generating $989.8 million, while Colorado, another mature market, reported a 9.5% drop, totaling $1.18 billion.
Even California, the leader in total sales with $4.16 billion YTD, experienced a 3.6% decline, underscoring challenges faced by long-established markets.
Read Also: YouGov Poll Reveals What Women Want With Weed: Relax, Mindfulness And Great Deals
Monthly Shifts
While year-to-date trends provide long-term insights, monthly data reveals shorter-term momentum shifts. According to BDSA, Missouri leads recent growth with a 4.9% month-over-month (MoM) increase, totaling $123.3 million.
Arizona, despite its YTD struggles, achieved a 4.4% MoM rise to $93.1 million. Conversely, Michigan recorded the steepest monthly decline, dropping 7.7% to $246.3 million, followed by New York with a 7.3% decrease, ending at $11.1 million.
Read Next: Pre-Rolls, The Avocado Toast Of Cannabis: Why Millennials Are Spending +$100M A Month
Green Wednesday,to be celebrated next week on November 27, has become the cannabis industry’s answer to Black Friday. This annual shopping event, known for its surge in sales, offers a critical opportunity for retailers to optimize their shelves based on insights into consumer behavior. According to New Frontier Data, understanding cannabis user archetypes can help businesses target key segments effectively and maximize revenue during this peak sales period.
One prominent consumer group, Savvy Connoisseurs, represents 13% of U.S. cannabis users and stands out as the most frequent and high-spending segment. These consumers, 75% of whom are under 45, use cannabis multiple times daily (54%) and purchase weekly (65%). Their typical spending exceeds $50 per visit (71%), making them a prime audience for Green Wednesday promotions. With diverse preferences across smokable and non-smokable products, this group’s demand for flowers, edibles, and vapes underscores the importance of offering variety and discounts to drive engagement.
- Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. You can’t afford to miss out if you’re serious about the business.
Relaxation Drives Recreational Lifestylers
Contemporary Lifestylers, who make up 16% of cannabis consumers, are another key segment on Green Wednesday. Consuming primarily to relax and unwind, they are frequent buyers, with over half purchasing weekly. According to New Frontier, edibles and vape pens are popular among this group, alongside traditional smoking methods. They tend to stick to legal markets, sourcing primarily from dispensaries.
Medical And Dual-Use Consumers Eye Holiday Deals
Medical Lifestylers and Modern Medicinals use cannabis primarily for health reasons, including pain management and sleep improvement. Together, they account for nearly a quarter of consumers.
These segments often prefer non-smokable forms like tinctures and topicals, with many making weekly purchases.
Green Wednesday promotions can strategically target Savvy Connoisseurs and recreational users with variety and discounts while appealing to medical users through wellness-focused offerings.
With 37% of U.S. adults using cannabis at least annually, this shopping event continues to expand its reach and impact.
Read Next: YouGov Poll Reveals What Women Want With Weed: Relax, Mindfulness And Great Deals
Ark Invest CEO Cathie Wood has laid out several price targets for Bitcoin (CRYPTO: BTC) including a bull case of $3.8 million if more companies add the cryptocurrency to their balance sheet. Benzinga readers see this price target as not likely to be reached by Wood’s projection of 2030.
What Happened: Wood has shared several price targets for Bitcoin over the years, which might seem more realistic given that the leading cryptocurrency has hit multiple all-time highs since the 2024 presidential election.
Earlier this year, Wood laid out her price targets for Bitcoin based on a bear case, base case and bull case for the year 2030. Wood also added a new bull case that includes the highest price Bitcoin could potentially reach by 2030 if companies allocated 5% to Bitcoin.
- The price targets are:
- Bear Case: $258,500
- Base Case: $682,000
- Bull Case: $1,480,000
- Bullish Case: $3,800,000
Benzinga recently asked readers if they thought Wood’s highest price target could be reached by the year 2030.
“Will Cathie Wood’s Bitcoin price prediction of $3.8 million by 2030 come true?” Benzinga asked.
The results were:
- No, Bitcoin will never reach $3.8 million: 34%
- No, Bitcoin won’t reach $3.8 million by 2030: 25%
- Bitcoin could reach $3.8 million, but not by 2030: 24%
- Yes, Bitcoin will reach $3.8 million by 2030: 17%
The poll found that only 17% of readers said that Bitcoin is likely to hit $3.8 million by 2030. The highest percentage of readers said Bitcoin will never reach the $3.4 million price target. The remaining readers see Bitcoin potentially hitting $3.8 million, but it will come after 2030.
Why It’s Important: Part of Wood’s thesis hinges on corporations adding Bitcoin to their balance sheet.
MicroStrategy Inc. (NASDAQ:MSTR) is the most famous example of this. The software company continues to invest its profits in Bitcoin and borrow to continue investing in Bitcoin.
Other companies, such as Tesla Inc. and Block Inc., added Bitcoin to their balance sheets, but in lower quantities than MicroStrategy.
MicroStrategy Chairman Michael Saylor recently said he will be presenting to the Microsoft Corporation (NASDAQ:MSFT) Board of Directors on why the tech giant should add Bitcoin to their balance sheet. The item was proposed to the company and could mark one of the largest companies to buy Bitcoin if the deal goes through.
Saylor also said he would advise Rumble Inc. (NASDAQ:RUM), whose CEO is considering buying Bitcoin.
There is also the potential that the new White House administration will advance calls to buy Bitcoin for a strategic reserve.
With a fixed maximum supply of 21 million Bitcoin, the demand from corporations and country governments to add BTC to reserves and balance sheets would likely spike the price, which was the key thesis of Wood’s price target.
Wood recently reiterated her price targets in a CNBC interview, highlighting Ark Invest’s early investment in Bitcoin.
“We were the first public asset manager to gain exposure to Bitcoin in 2015 at $250,” Wood said.
Wood said that even with Bitcoin trading at around $90,000, the company believes there is a long way to go.
The fund manager said that getting regulatory relief with a new administration is one of the most important things for Bitcoin. Wood also sees Bitcoin being viewed as a new asset class, leading to more institutions and asset allocators wanting to invest in the top cryptocurrency.
Wood’s Ark Invest was also one of several companies to have a Bitcoin ETF approved by the SEC with its Ark 21 Shares Bitcoin ETF (BATS:ARKB).
BTC Price Action: Bitcoin trades at $98,617.47 at the time of writing and is up 123% year-to-date in 2024. A recent Benzinga poll found that 73% of readers believe Bitcoin will reach $100,000 by the end of 2024.
Read Next:
The study was conducted by Benzinga from Nov. 14 through Nov. 15, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 156 adults.
Image created using a photo from Ark Invest and Midjourney.
Over half of the Magnificent 7 stocks have outperformed the S&P 500 in 2024 and all seven have produced higher five-year returns. Benzinga readers pick which Magnificent 7 stock could have the best 2025 and if anyone can catch Nvidia Corporation (NASDAQ:NVDA), which continues to beat analyst estimates.
What Happened: Nvidia stock is up 199% year-to-date in 2024 and could have more upside ahead according to analyst price targets after the company’s third-quarter beat and raised guidance.
Benzinga recently asked readers if any of the Magnificent 7 stocks could post stronger stock growth than Nvidia in the next year.
“In 2025, which Magnificent 7 stock could outpace Nvidia in growth?” Benzinga asked.
The results were:
- None – Nvidia will dominate: 48%
- Tesla Inc (NASDAQ:TSLA): 27%
- Amazon.com Inc (NASDAQ:AMZN): 8%
- Meta Platforms (NASDAQ:META): 7%
- Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL): 6%
- Microsoft Corporation (NASDAQ:MSFT): 3%
- Apple Inc (NASDAQ:AAPL): 2%
The poll found the near-majority predicting Nvidia will have the strongest growth in 2025 and dominate the Magnificent 7 stocks once again.
Coming in second place, and the stock that could have the best chance to pass Nvidia according to readers, was Tesla at 27%. This might not be a huge surprise given Tesla’s five-year return is the next closest to Nvidia’s when looking at the Magnificent 7 stocks.
Here are the current year-to-date and five-year returns of the Magnificent 7 stocks:
- NVDA: YTD +199.1%, 5-Year +2,634.2%
- TSLA: YTD +38.2%, 5-Year +1,446.2%
- AMZN: YTD +31.3%, 5-Year +125.5%
- META: YTD +61.3%, 5-Year +181.0%
- GOOG: YTD +19.7%, 5-Year +158.0%
- MSFT: YTD +11.4%, 5-Year +176.2%
- AAPL: YTD +23.3%, 5-Year +249.7%
Perhaps most surprising in the poll was Apple finishing last despite having the third-best stock performance over the last five years.
Compare the returns above to the SPDR S&P 500 ETF Trust (NYSE:SPY), which tracks the S&P 500, which is up 25.3% year-to-date and up 90.4% over the last five years.
Meanwhile, the Roundhill Magnificent Seven ETF (NASDAQ:MAGS), which invests in the Magnificent Seven stocks, is up 55.7% year-to-date. The ETF has not been around for five years to track that performance.
Are you buying when the CEOs of the Magnificent 7 are selling?
- Stay in the know with our Insider Trades page — see when leaders like Mark Zuckerberg, Elon Musk, and Jensen Huang are offloading their own shares.
Why It’s Important: A recent Benzinga poll asked readers to predict if Nvidia would beat, miss or meet earnings estimates in the third quarter.
The results were:
- Meets expectations: 45%
- Blowout Beat: 42%
- Misses expectations: 13%
The majority of Benzinga readers expected the company to meet or beat the estimates from analysts. While more readers expected the company to meet estimates, 42% believed the company would beat estimates Wednesday.
Benzinga readers also predicted what an earnings beat could mean for Nvidia stock going forward.
“If Nvidia shatters expectations, how high could its stock go by the end of 2024?” Benzinga asked.
The results were:
- $150 to $180: 55%
- $180 to $200: 26%
- Above $200: 18%
Nvidia shares traded down in after-hours Wednesday before reversing to the green in early Thursday trading. The stock is down 0.5% to $145.20 Thursday at the time of writing.
Read Next:
The study was conducted by Benzinga from Nov. 19 through Nov. 20, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 128 adults.
Image: Unsplash
At the Cannabis Market Spotlight: California event in Anaheim, Lisa Weser, founder and CEO of Trailblaze, addressed a core debate within the cannabis industry: balancing consumer-driven product trends with a commitment to quality production.
Weser, alongside other industry professionals, shared insights on how cannabis brands can adapt to shifting consumer preferences while remaining true to high production standards.
Consumer Demand or Industry Direction?
Weser’s panel tackled a foundational question: are consumer preferences driving changes in the cannabis industry, or is the industry itself setting expectations? Speaking with experts from Papa & Barkley, Jetty Extracts, Natura, and Timeless Vapes, Weser observed that perspectives on this issue vary widely.
One common theme in the discussion was the need to “meet consumers where they are,” a concept familiar in the consumer goods space. This approach focuses on crafting products that appeal directly to consumers’ tastes.
“We’re seeing new consumers, especially younger ones, drawn to products with bold flavors,” Weser said, noting the appeal of flavor-centric offerings over traditional high-grade cannabis flowers for some segments of the market.
Back to Basics: Quality First
In contrast, other panelists argued for a renewed focus on quality in cannabis production. They expressed concern that while consumer trends are essential, some brands may have strayed too far from the core values of cultivating excellent cannabis. According to Weser, many industry leaders believe that true product quality “starts at the farm,” emphasizing that the cannabis industry should prioritize strong cultivation practices rather than relying solely on novelty.
This quality-focused viewpoint suggests that long-term success may be achieved by building on reliable practices, producing products that satisfy discerning customers, and reinforcing brand integrity.
Striking a Balance
Weser highlighted that both approaches hold weight in today’s diverse cannabis market. Flavor-driven products may help engage newer consumers while focusing on quality that resonates with established users. “Both approaches are valid in today’s market,” she remarked, underscoring the importance of accommodating the varied needs of cannabis consumers.
This dialogue reflects a larger conversation in the cannabis industry about balancing the drive to meet consumer preferences with a dedication to sustainable quality. By exploring these perspectives, Weser’s panel provided valuable takeaways on how brands can connect with different customer bases while maintaining high standards.
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From cost savings to ensuring consistent quality, the foundation of every successful investment begins with reliable seeds. Developing such genetics is no small feat; it takes decades, even generations, to achieve perfection. Few companies embody this legacy better than Dutch Passion Seeds, an Amsterdam-based pioneer founded in 1987.
With a track record of innovation, including introducing feminized seeds, Dutch Passion has built a reputation for producing traceable, stable genetics, under the highest standards.
“Everything starts with a seed,” Francesco, global sales director of Dutch Passion Seeds told Benzinga Cannabis in an exclusive interview. “Without good genetics, there’s no foundation for cultivation or scaling operations.”
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A Global Mission Rooted In Quality
Francesco emphasized Dutch Passion’s commitment to maintaining quality through centralized production in the Netherlands. “All our seeds are produced in-house, allowing us to control every aspect of the process.” This strategy ensures consistency and upholds their reputation, even as demand for seeds continues to rise globally.
The company’s infrastructure includes expert breeders—some with decades of experience—who pass down their craft to the next generation. For example, the celebrated Orange Bud strain has been cultivated by the same breeder for over 35 years.
Lessons From Canada: A Mature Market’s Impact On Cultivation And Sales
Canada, one of the first major countries to legalize recreational cannabis, has been both a significant opportunity and a learning curve for Dutch Passion. Before legalization, Canada was a leading market for the company’s seeds, driven by high demand from home growers. However, Francesco explained that legalization shifted consumer behavior, leading to a notable decline in home cultivation.
“When legal cannabis products became widely available, domestic cultivation dropped significantly,” he said. This trend, Francesco noted, has been replicated in other countries following legalization, such as Thailand. For Dutch Passion, the shift required adaptation, including launching branded pre-rolls and flowers in Canada.
Despite an initial sales peak, Francesco acknowledged that the Canadian market has become increasingly saturated, with competition and price pressures impacting profitability. “We saw strong demand for about two years post-legalization, but the market is now stabilizing at lower levels.”
Emerging Markets: Thailand And Germany
Thailand is quickly becoming a major cannabis seed market in Asia, and Dutch Passion is capitalizing on the opportunity. Building on a year of growing seed distribution and local partnerships, the company recently opened a compliant dispensary in Bangkok. Francesco called the move essential for navigating this dynamic market.
Meanwhile, Germany’s impending recreational cannabis legalization represents a game-changing opportunity.
Dutch Passion plans to supply clones and eventually, branded flowers to German consumers. “The German market will reshape Europe’s cannabis landscape,” Francesco said. Collaborating with local partners is integral to their strategy, as is leveraging their strong genetics portfolio to meet rising demand.
Chile And Argentina
Chile has served as Dutch Passion’s gateway to Latin America, thanks to its progressive stance on cannabis seeds. “Chile legalized cannabis seeds, making it an ideal market for our entry,” Francesco explained. The country’s burgeoning growing shops and cultural acceptance of cannabis have positioned it as a regional leader.
Argentina, on the other hand, offers untapped potential, but navigating its regulatory framework remains challenging. Francesco praised the country’s medicinal cannabis laws, which allow patients to grow their plants. However, he noted that the Instituto Nacional de Semillas (INASE), Argentina’s regulatory body, faces overwhelming demands with limited resources.
“INASE is under incredible pressure with over 850 registration requests, yet there is only one person dedicated to cannabis applications. It’s an unsustainable workload,” he said. Streamlining these processes could unlock Argentina’s potential as a major player in cannabis genetics.
Read Also: Hemp Finally Gets Regulated In Argentina: Will It Boom Like The Country’s Many Other Ag Products?
Challenges In Argentina’s Import Market
Argentina’s restrictive import framework and complex customs regulations pose significant barriers for global players like Dutch Passion. Francesco acknowledged that bureaucratic red tape and inconsistent import policies make it difficult for international companies to establish a foothold in the country.
However, he highlighted the potential for collaboration. “We’ve seen legalization processes in many countries and can offer our expertise to Argentine authorities to build a system that benefits everyone—from growers to regulators.”
Balancing Costs And Innovation
Operating in the Netherlands comes with higher production costs due to labor and energy expenses. Despite this, Francesco emphasized that Dutch Passion remains competitive by offering a diverse catalog with price points ranging from affordable staples to premium, limited-edition genetics. “Our pricing reflects the quality and innovation behind each strain,” he said.
This approach also allows them to cater to both small-scale growers and larger cultivators in need of bulk seeds. For the latter, Dutch Passion provides wholesale packages of up to 100 seeds per order, ensuring accessibility for commercial operations without compromising quality.
Read Also: Tilray Joins German Cannabis Fiesta With First Locally Grown Strains
Looking Forward
Dutch Passion Seeds continues to invest in innovation, such as developing sterile genetics resistant to pests and mold, which could revolutionize cannabis cultivation.
Francesco emphasized the importance of adaptability in an industry shaped by shifting regulations and consumer preferences.
“Our future lies in creating strains that maximize terpenes and cannabinoids while improving resistance to environmental stresses,” he said.
Read Next: Selling Weed Is Like A Sneaker Drop: Running Out Isn’t A Problem For This Company
At the recent Cannabis Market Spotlight event in Anaheim, California, Department of Cannabis Control director Nicole Elliott addressed some of the state’s pressing cannabis industry challenges, zeroing in on tax reform and hemp regulation as two priority areas.
As the state’s top cannabis regulator, Elliott provided a window into the Department’s goals as it navigates an increasingly complex regulatory landscape while striving to support industry growth and public health objectives.
Tackling Tax Challenges
Elliott spoke to the ongoing challenges posed by the state’s current tax framework for cannabis businesses. Acknowledging the financial burdens and inefficiencies that affect operators, she explained how these tax issues undermine the state’s cannabis objectives.
See Also: California’s Cannabis Future: Why One Expert Believes The Market Will Hold Strong
“We know taxes will be an issue,” Elliott noted, emphasizing the importance of constructive engagement between industry participants and legislators. She encouraged those in the cannabis space to approach the state legislature with clear, informed communication to help shape effective tax reforms.
Hemp Regulation and Unregulated Market Enforcement
Elliott also addressed the recent California court decision upholding restrictions on certain hemp products. While the California Department of Public Health manages hemp regulations, Elliott’s department is involved in enforcing regulations within unregulated markets. Her team also serves as an advisor on cannabinoid products and regulatory standards.
“We are serving as a subject matter expert when it comes to cannabinoid products, cannabinoid regulations,” she shared, describing the department’s role in guiding policy that aligns with California’s public health and regulatory goals.
At the event, Elliott’s comments offered industry professionals insights into the state’s regulatory priorities, signaling areas of focus and potential legislative action as they prepare for what lies ahead in 2025.
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In Anaheim at the recent Cannabis Market Spotlight: California event, seasoned cannabis entrepreneur Seth Yakatan shared his perspective on the cannabis industry’s current landscape and future potential.
Despite recent shifts in cannabis stock prices, Yakatan believes the sector remains fundamentally stable. “The technical fundamentals of the sector pretty much remained the same,” he noted, adding that he saw the price drop as an opportunity and “just bought more stocks cheaper.”
Federal Policy and a Cautious Outlook
Looking ahead, Yakatan discussed the impact of upcoming federal decisions on the cannabis industry. He remains “cautiously optimistic” but believes it could be March before any clear direction emerges.
Yakatan highlighted three key areas to watch: the selection of a new Attorney General, possibly reclassifying cannabis to Schedule III and ongoing legislative changes in states like Pennsylvania. “Anything other than that’s probably just speculation,” he remarked, stressing that the path forward depends on these developments.
California’s Market Leads the Way
Yakatan also expressed confidence in California’s enduring position as a leader in the U.S. cannabis market, calling it “still the biggest cannabis market in the United States.”
Although he acknowledged challenges within California’s market, he emphasized the dedication of long-standing businesses that continue to secure investment and make strides in the industry. “I don’t see that dynamic changing,” Yakatan stated, underscoring his confidence in California’s cannabis market to continue thriving.
Yakatan’s observations at the event reflected the optimism shared by many industry experts, signaling a resilient future for cannabis even as it faces a complex regulatory environment.
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Vertically integrated cannabis company Cansortium Inc. (CSE:TIUM) (OTCQB:CNTMF), operating under the FLUENT brand, launched the cannabis concentrate line, Hyer Kind. The Tampa-based multi-state operator notes that the new product is exclusively available at all FLUENT dispensaries across Florida.
Hyer Kind offers cured badder, crumble, and cured resin cartridges designed to support wellness routines and address the increasing interest in concentrates among medical marijuana patients in the Sunshine State.
“As FLUENT’s first brand dedicated exclusively to concentrates, Hyer Kind marks a key milestone for us,” stated Robert Beasley, CEO of Cansortium. “We are so proud to be associated with a quality brand like Hyer Kind and know consumers in Florida will be happy that this offering is now available in our stores. From the whole flower selection to the extraction methods, we’re on a mission to set a new standard for concentrates by prioritizing flavor, quality, innovation and accessibility. It’s our responsibility to meet patients where they are by expanding our offerings and providing diverse price points to ensure everyone has access to the products that suit their needs.”
Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.
Hyer Kind products are developed to provide full-spectrum flavor derived from cannabis plants. The process involves selecting whole flowers and using hydrocarbon and solventless extraction techniques. Methods like live ice-water extraction are employed to maintain quality and potency for medical marijuana patients.
With plans to expand Hyer Kind into additional markets, including New York, its cured badder and resin cartridges (0.5g) are available exclusively to Florida patients for $50, with crumble priced at $45. FLUENT also plans to expand the brand’s portfolio with additional concentrate options.
In October, the New York Cannabis Control Board approved the merger between Cansortium and RIV Capital. The merger, expected to close by the end of 2024, positions the combined company to take full advantage of covering 25% of the U.S. population with eight cultivation and processing facilities and 42 retail dispensaries.
Price Action
Cansortium shares closed Wednesday’s market session 5.26% lower at $0.900 per share.
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Editor’s Note: The story has been updated to mention the quantity of restricted stock purchased by the CEO
On Thursday, Worksport Ltd (NASDAQ:WKSP) announced that it has retained Digital BD, Inc to monitor and investigate potentially illegal short-selling activity of its stock.
Rossi said the recent stock trading activity must reflect the business’ health or significant growth pathways.
He said that the company sets new volume sales records almost daily while facing suspicious and volatile stock activity that it proposes to investigate thoroughly.
The company reported a 581% growth in the third quarter and expects the 2025 revenue to exceed its market capitalization as of Wednesday. The sales are growing exponentially monthly, and three highly innovative products are set for near-term release, Rossi added.
Concurrently, CEO Steven Rossi has purchased 33,333 restricted Worksport shares at a 44% premium to the market price at $0.75 per share on November 19th.
Worksport has engaged Digital BD, a provider of Regulation SHO compliance monitoring, short sale trading analytics, and market integrity surveillance to safeguard shareholder value and address unusual trading patterns.
Digital BD will monitor daily short volume data from all U.S. exchanges, encompassing EXEMPT and NON-EXEMPT short sales, and will report its findings to the company.
Digital BD will scrutinize market makers trading Worksport shares daily for adherence to fair market-making requirements.
The Securities and Exchange Commission specifies that bona-fide market-making does not include activities related to speculative selling strategies for investment purposes that are disproportionate to usual market-making patterns.
Rossi expressed commitment to continuing its growth trajectory and protecting the interests of our shareholders. With the assistance of Digital BD, the company proposed to closely monitor trading activities to ensure compliance with all legal requirements.
CEO Rossi said Worksport as significantly undervalued and expects to unlock its true value. He also looks to discover, eliminate, and do everything possible to prevent future illegal short selling or open market manipulation of Worksport’s stock.
Worksport’s third-quarter revenue reached $3.12 million, up by 581% year-over-year.
Price Action: WKSP stock traded higher by 5.42% to $0.53 premarket at the last check on Thursday.
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