Social Media Sites Slam Door on Weed was the headline all through the news cycle today, after Facebook (FB) and Instagram notified users who had Cannabis related products or information on their sites that they would be shut down. It came swift and purposeful and left many scrambling about what to do and where to go as part of the free Social Media Outlet disappears, which will clearly impact the business model for many small companies.
I think to many industry watchers it comes as a small surprise as undoubtedly these large public companies run the risk of subtly marketing an illegal substance. To me it is silly, the horses are out of the barn here. But being a Social Media CEO in 2016 comes with these kinds of decisions...it's not just I'm CEO bitch any longer...
Businesses that have had their accounts closed are increasingly gravitating towards social media sites focused solely on cannabis users; such as, MassRoots (MSRT), a 46M marketcap company with liquidity. “We’re going to encourage others in the industry to just embrace MassRoots,” said Dixie’s Brands CMO Joe Hodas. “Let’s go where we’re wanted.”
Colorado-based Dixie Brands – which produces edibles – is a company that doesn’t fit within the retail mold. Most of its social media posts have more to do with industry news than deals for consumers, said Joe Hodas, the company’s chief marketing officer. And yet it lost its Instagram account a few weeks ago, and on Friday, its Facebook page was closed. “I didn’t feel like we were violating any terms and conditions,” Hodas said. “If there was something we could have changed, we would have done so.”
Shares in Massroots (MSRT) had a similar pop a year ago for totally different reasons, but a quick look at their price action lends itself to a bottom. MassRoots, Inc. operates as a mobile network for the cannabis community in the United States. The company's mobile network enables people to share cannabis-related content and businesses to connect with the consumers. Its network is accessible as a free mobile application through the iOS App Store and the Google Play marketplace; and as a Website at massroots.com.
The company also operates Massroots store.com, an e-commerce platform that allows visitors to order MassRoots T-shirts, jars, and stickers; and MassRoots for Business, a free online portal for dispensaries to schedule posts, view analytics, and gain insights into followers. MassRoots, Inc. was founded in 2013 and is based in Denver, Colorado.
MassRoots (MSRT) 6 Month Chart
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