The cannabis industry is experiencing a massive growth spurt, creating an exciting opportunity for investors. However, with the industry’s rapid expansion, investors are finding it difficult to make informed decisions about which cannabis companies to invest in. This is where alternative data comes in. It is emerging as a powerful tool to help investors gain a competitive edge in the cannabis industry. In this article, we will explore alternative data and why it has become increasingly important in the cannabis industry.
What is Alternative Data?
Alternative data is non-traditional data that is not found in financial statements or regulatory filings. This type of data includes information such as social media sentiment, web traffic, and satellite imagery. Alternative data can help investors gain insights into a company’s performance that are not available through traditional financial metrics.
In the cannabis industry, traditional financial metrics can be misleading. Many companies are still in their early stages and are not yet profitable. Alternative data provides investors with a more complete picture of a company’s performance. By combining traditional financial metrics with alternative data, investors can make more informed decisions about which cannabis companies to invest in.
Why Alternative Data Matters In the cannabis industry
Alternative data is becoming increasingly important in the cannabis industry. Traditional financial metrics can be misleading in the cannabis industry because many companies are still in their early stages and are not yet profitable. Alternative data provides investors with a more complete picture of a company’s performance. By combining traditional financial metrics with alternative data, investors can make more informed decisions about which cannabis companies to invest in.
Providers of Alternative Data for the Cannabis Industry
There are several providers of alternative data for the cannabis industry. Two of the top providers are Estimize and YipitData.
Estimize
Estimize provides consensus estimates on public companies in the cannabis industry. These estimates are generated by both buy-side and sell-side analysts. Estimize’s platform allows investors to see how these estimates compare to traditional Wall Street consensus estimates. This information can help investors make more informed decisions about when to buy or sell a particular cannabis stock.
Estimize’s platform is unique because it crowdsources data from analysts and investors. This approach provides a more accurate view of a company’s performance, as it includes a wider range of perspectives. Estimize’s platform also provides investors with the ability to see how their estimates compare to the broader market.
YipitData
YipitData specializes in informing investors of fundamental performance and when a company under or overperforms from consensus. This type of data can be particularly useful in the cannabis industry, where the legal landscape is constantly changing. YipitData’s platform allows investors to track key performance indicators for cannabis companies, such as revenue growth and customer acquisition rates.
YipitData’s platform is unique because it uses web data to provide insights into a company’s performance. The platform tracks online transactions and user behavior to provide investors with a more accurate view of a company’s performance. YipitData’s platform also provides investors with real-time updates, allowing them to make more informed decisions about when to buy or sell a particular cannabis stock.
Conclusion
Alternative data is an increasingly important tool for investors in the cannabis industry. Providers such as Estimize and YipitData are helping investors make more informed decisions by providing consensus estimates and key performance indicators. As the cannabis industry continues to grow and evolve, alternative data will become an even more crucial tool for investors. By using alternative data, investors can gain a competitive edge and capitalize on the exciting opportunities available in the cannabis industry.
