Sean Williams, 28 April 2020
If you thought the stock market has been taken on a wild ride over the past two months, then take a closer look at how marijuana stocks have fared since the beginning of April 2019. Following the first quarter of 2019, which saw numerous pot stocks rocket into the stratosphere, the past 13 months have erased anywhere from 50% to 95% of cannabis stock valuations.
Mind you, the long-term outlook for the legal weed industry is promising. Tens of billions of dollars in sales are conducted in the black market each year, meaning there’s a very real opportunity to move these illicit users to legal channels over time. But in the short run, U.S. pot stocks have been crushed by high tax rates, while Canadian cannabis companies have run into supply bottlenecks and shortages, depending on the province.