- The stock price of Grove Inc (NASDAQ: GRVI) increased by over 80% during intraday trading today. This is why it happened.
The stock price of Grove Inc (NASDAQ: GRVI) – a global innovator in hemp, health, and wellness – increased by over 80% during intraday trading today. Investors are responding positively to Grove announcing the launch of Upexi, its wholly owned division to acquire promising Amazon and Ecommerce businesses.
Since last year, funding has poured into Amazon aggregators, raising nearly $10 billion according to Marketplace Pulse. And investors are racing to fund these companies whose goals are to buy promising Amazon brands that buyers believe can be scaled.
Through the launch of Upexi, Grove intends to take direct aim at the Amazon Aggregation market. And Grove plans to enter the market as a desirable suitor to which prospective business owners may sell. With Upexi, potential sellers will be able to access Grove’s programmatic ad technology, in-house digital marketing experts, and direct partnership with a team of expert Amazon PPC buyers who fine tune listings or start from scratch.
Grove made a name for itself in the CBD/cannabis space and has already begun expanding into other verticals. And the company recently acquired Vitamedica, an online nutraceutical company with a rapidly growing presence in ecommerce and Amazon. Through the company’s in-house team of digital marketers, Grove is now pursuing more companies in health/wellness/beauty/pet care that they can take to the next level.
Grove’s hemp business has fueled its growth up until this point, reporting 2021 fiscal year revenues, with key financial highlights:
— $24.1 Million, a 250% Increase Over 2020
— Net Earnings of $2.9 Million or $0.25 Per Share
— 4th Quarter revenues of $10.64 million a 361% growth over prior year quarter
— Revenue guidance of $48-$55M for 2022
“We’ve seen exponential growth in our hemp business over the past 2 years and continue to grow. It’s now afforded us the ability to expand into other verticals. Amazon aggregation has been a goal for us since the beginning. We’re hoping to add 10+ Amazon and Ecommerce businesses to the portfolio over the next year, and another 10 the following. We want to reward people for what they’ve done and give them the ability to see their brand grow under Grove. In many cases, we hope to attract the Amazon/ecommerce experts behind these brands and continue to add talent to our team.”
— Grove CEO Allan Marshall
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.