Marijuana Company of America (OTCQB:MCOA) posted strong Q2 results this morning, boosting MCOA stock over 13%.
Most Successful Quarter to Date
MCOA reported that the total revenue of its hempSMART™ CBD products was $208,580 USD for the second quarter, compared to $28,435 USD for the same period last year, which represents a significant increase of 633.5% year-over-year.
The company also reported gross profit grew by 86% from $24,271 USD to $179,441 USD, and a substantial decrease in net loss, falling from $7,645,404 USD to $419,624 USD. This morning's financial results represent the most successful quarter in the company's history and saw MCOA stock surge as much as 13% as a result.
“Our second quarter of 2019 has been our most successful quarter to date at hempSMART. We continue to generate strong sales and momentum in Q3 with over $100,000 in gross sales for just the month of July,” said CEO of MCOA, Donald Steinberg. “We expect to see sustainable demand for our uniquely formulated hempSMART™ CBD product brand in the coming quarters. MCOA will continue to expand our hempSMART brand in the United States as well as internationally in the European marketplace.”
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What Next for MCOA Stock?
Today's results represent a much-needed boost for MCOA stock, which has shed as much as 88% of its value in the last year, having fallen from a 52-week high of $0.0353 last September to as low as $0.0041 earlier this month. This sharp drop-off in share value is indicative of how the market as a whole has behaved amidst numerous regulatory issues as well as underwhelming consumer demand.
However, MCOA stock could be set for a rebound as retail predictions for the emerging CBD market are very favorable. According to a report from leading cannabis researchers BDS Analytics and Arcview Market Research, sales of CBD-based products in the US are expected to exceed $20 billion USD in the next five years.
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