It is common practice to build a business based on the past success of a similar model. It’s also smart. For example, Chinese technology giant Baidu(NASDAQ:BIDU) is often dubbed the “Google of China.” Over the last decade, BIDU is a 20-bagger that is now worth $90 billion. Another example is Iqiyi (NASDAQ:IQ), or the “Netflix of China.” Since its IPO, the stock is up over 100% in four months.
These kinds of comparisons can be used as attention-grabbing headlines, but when they are true, the result is big profits. That’s where we find ourselves today. Leading e-commerce cannabis company Namaste Technologies (OTCMKTS:NXTTF) is striving to become the “Amazon of Marijuana.”
Namaste is a $300 million company that is dual-listed on the Toronto Stock Exchange and the OTC market in the United States. The company offers a wide array of marijuana-related products via more than 30 websites in over 20 countries.
Your everything cannabis store — that’s what NXTTF considers itself. It offers vaporizers, glassware, cannabidiol (CBD) products, accessories and more. And the most promising news is that the company will soon make a major move into selling medical cannabis in Canada.
In March, NXTTF officially received its medical cannabis production license from Health Canada to become a licensed producer through its wholly owned subsidiary CannMart. The subsidiary allows Namaste to distribute cannabis through its Toronto location. Eventually, it will provide patients with medical marijuana via websites in approved areas in Canada.
A Leader with Huge Upside Growth Potential
As the legalization of medical and recreational marijuana continues to expand, NXTTF is one of the best-positioned companies. And its already-strong global online presence gives the stock big upside potential. Most marijuana investors are solely focused on Canada and the U.S. right now. That’s fine, but they are ignoring the rest of the world, which is also on track to turn into a huge market.
The other big catalyst for NXTTF in the coming months is an anticipated approval by Health Canada for a medical sales license. The paperwork has already been filed, and once approved, the shipment of marijuana around Canada should be a boon to revenue.
Speaking of revenue, the company’s most recent financials were released toward the end of July and the top line grew 32% over the same quarter last year. For the nine months that ended May 31, 2018, revenue came in at $14.6 million — an increase of 106% from the same nine-month period a year earlier.
It’s also worth mentioning NXTTF’s use of another growing phenomenon: artificial intelligence (AI). The company recently purchased Findify AB, a leading artificial intelligence software company. This is important because Namaste will use it to impact customer experience online or via an app, which is critical to sales and stickiness of customers. The use of AI will set NXTTF apart from its competitors and keep it the leader of marijuana e-commerce.
So yes, NXTTF really does have the potential to be the “Amazon of Marijuana.