Monday , 1 June 2020


The Dramatic Rise and Fall of Cannabis Company Stocks

The …expansion of cannabis across North America took the investment world by storm…[over the past year] yet, even as changing regulations unlock new opportunities, it seems as though the cannabis stock bubble has already burst — at least temporarily. Today’s visualization dives into the roller coaster of cannabis company stock valuations over the past few years, and which companies remain standing in this…[fledgling] market.

Cannabis Company Stocks

At the tail-end of 2017, the promise of upcoming legalization in two immense markets—California state and Canada—had investors all fired up. The index’s low (105.31 on June 27th, 2017) shot up almost three times to 358.93 by January 8th, 2018 [but[ things took a sharp turn in the second quarter of 2019, as the expectations for cannabis company stocks encountered a harsh reality post-legalization.

…[Many] investors may continue to pull their dollars from the cannabis industry…[but]  some investors aren’t calling it quits quite yet…arguing that these are simply short-term growing pains and will be solved as the industry matures. [[Indeed,] experts predict that U.S. cannabis sales could reach immense heights in the next decade:

  1. $30 billion by 2025 (New Frontier Data)
  2. $50 billion by 2029 (Jefferies Group LLC)
  3. $75 billion by 2030 (Cowen Inc.)
  4. $100 billion by 2029 (Stifel Financial Corp)

Compared to a benchmark of $13.6 billion today, these numbers may seem ambitious—but they’re backed by major industry trends. 2020 could well be the year the market stabilizes, as consumers explore an array of retail options and vote with their wallets…[and] key players in consumer industries—from alcohol and tobacco to beauty and fitness—make big bets in cannabis and CBD-infused products…[and enter into] a higher number of partnerships [that] could spark the next uptick for the industry’s potential…

Editor’s Note:  The above excerpts from the original article by Iman Ghosh have been edited ([ ]) and abridged (…) for the sake of clarity and brevity.  The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.  Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

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