What happened

Shares of New Age Beverages Corp. (NASDAQ:NBEV) were soaring again today as excitement over marijuana stocks continues to bubble over. Though there was no specific news out on New Age Beverages, shares rose in tandem with those of the high-flying Canadian marijuana grower Tilray (NASDAQ:TLRY), which was also up double digits today. New Age stock had gained 36.2% as of 11:04 a.m. EDT.

A grapefruit beverage with a marijuana leaf in it.

Image source: Getty Images.

So what

Shares of New Age, which makes beverages like kombucha, iced tea, and energy drinks, have been highly volatile for the last two weeks after rumors broke that the company was preparing to launch a cannabidiol- (CBD-) infused line of beverages. The company confirmed those reports later that week, saying it would launch the new product line at the North American Convenience Store show in Las Vegas next week. 

As a result, New Age stock has rocketed back and forth, as the chart below shows, reaching an intraday trading high of $9.99 on September 21.

NBEV Chart

NBEV data by YCharts.

After coming back down, shares are now moving higher again, as the stock has become popular with day traders as anticipation for the CBD beverage launch next week seems to be building.  

Stocks like New Age Beverages and Tilray might be moving higher in part due to short squeezes, as New Age Beverages has a low float, with only 29 million shares available to the trading public, and volatile marijuana stocks like these have attracted short-sellers. Before noon today, already 41 million shares had been traded, indicating heavy day-trading activity.

Now what 

There is plenty of evidence that marijuana stocks are in a bubble, but there's also a justification for New Age's rally. Coca-Cola has expressed interest in cannabis-based beverages, meaning New Age could be an acquisition target, especially if its new CBD beverage line is successful. Also, several other beverage companies, including Constellation Brands and Molson Coors, have forged alliances with marijuana growers, indicating significant opportunity in marijuana beverages.

With New Age's CBD beverage launch set for next week and Canadian legalization of recreational marijuana scheduled for Oct. 17, expect continued volatility in New Age shares.

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.