Shares of New Age Beverages Corp. (NASDAQ:NBEV) were fading today after investors seemed to be letting the air out of the stock after a two-day rally heading into next week's unveiling of a new line of cannabidiol (CBD)-infused beverages. Though there was no specific news out on New Age today, it pulled back in tandem with other marijuana stocks. As of 11:32 a.m. EDT, shares were down 14.3%.
Today's pullback comes as New Age stock had more than doubled in just two sessions from last Thursday, Sept. 27, to yesterday. It's been incredibly volatile since rumors came out on Sept. 17 that the company, which makes beverages like kombucha, iced tea, and energy drinks, was getting into CBD beverages. Management confirmed those rumors later in the week, saying it would launch the new set of drinks at the North American Convenience Store show in Las Vegas from Oct. 7-10, and solicit buyers for the new product.
New Age's slide today mirrored that of marijuana stocks like Tilray, Aphria, and Aurora Cannabis. However, rival CBD beverage maker India Globalization Capital spiked nearly 50%, though those gains also seem to be driven by day traders as well.
Shares of New Age are trading in especially high volume again today as already more than 42 million had exchanged hands before noon, in excess of its float of 28.7 million shares, or the number of shares that are available to the public. That low float and anticipation for the unveiling of New Age's CBD beverages next week should ensure ongoing volatility in the stock until then. Expect more days like today.