Namaste stock is not currently reflecting the operational success the company is experiencing. With a market cap of $593 million CAD and a current selling price of $1.93, Namaste stock has seen some exciting highs, but equally puzzling lows.
Namaste Stock: A Unique Business Model
Namaste Technologies (TSXV:N) (OTCQB:NXTTF) has done something rather clever. It has molded itself into an “all-you-need” platform for medical cannabis users and has created a niche for itself in doing so.
Its business model comprises of three main branches:
- Cannmart—Namaste’s online medical cannabis shop
- Uppy—Its cannabis journaling app, which offers personalized information and recommendations on medical cannabis intake
- NamsateMD—an online cannabis consultation service, connecting users to MDs and licensed producers, and further helping users to understand their medical cannabis needs.
The three arms of this business link together to give users all they could need in the medical cannabis sector. The overall platform guides patients from consultation through to prescription and even to ordering from Cannmart, all within the same day.
It sounds pretty straight-forward and equally very convenient, so why do investors question Namaste stock? Its volatility has been unprecedented in recent months.
Does an Online Business Help or Hinder Namaste Stock?
Maybe operating online brings risk? But it does have pros. For example, operating online means Namaste Technologies can service every legal jurisdiction in the world. This also means it can serve new jurisdictions quickly, wherever and whenever they might pop up.
The cons of operating online include the fact that most online marketplaces are already dominated by major companies. Cannabis isn’t yet, but what would happen if, say Amazon (NASDAQ:AMZN), decided to start selling cannabis?
Namaste’s business model means it is at risk of having competitors in the shape of some of the most powerful companies in the world. It may not yet, but it easily could in 3–5 years. In such a case, Namaste Technologies would have to rely on the loyalty of its current user base to survive. Its Uppy app and MD service may also become dated in the not-too-distant future, as people familiarise themselves with their intake and the cannabis market in general.
Will you still need a journal after three years of taking the same product for example? Maybe. But maybe not.
It’s food for thought, but perhaps this is one reason why Namaste stock is finding it hard to reach the $5 mark.
In the meantime, offering medical cannabis convenience and education in what is, for some, a very new sector will help it build that loyal user base.
Namaste stock doesn’t reflect it, but this is ringing true if we consider the steady increase of user numbers.
NamasteMD acquired 48% more users last month than the previous one. According to the company, these have come from organic traffic and patient referrals or word-of-mouth. Add to that, its Uppy app has achieved 23,000 downloads thus far.
With over 1.5 million customers globally and operations in over 20 countries, its popularity will give Namaste a competitive advantage in emerging markets. But whether or not Namaste will stay competitive in the long-term is the real question.
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