While the stock market as a whole dips, the cannabis stock market remains strong and will only improve
The cannabis stock market has had a rough year, especially for the bigger multi-state operators in the US who experienced a drop in their values of more than 50% – in some cases a lot more. When it seemed like the decline in the market was close to an end and some recovery was starting to be perceived, the coronavirus pandemic entered the scene and created financial havoc for almost every industry. However, the pandemic has had both good and bad impacts on the cannabis industry, and there are other factors that can also give a boost to the industry in the middle of a bad economy and put it as a top option for investment.
Since late 2019 and throughout 2020, the US operators, especially those dedicated to operating fundamentals, have already started to see some recovery. One of the main factors that give the industry an edge in the middle of a bad economy is the spike in cannabis sales that most markets have experienced since the beginning of the pandemic, and that somehow it has continued to grow. In the same way, US stocks seem to be having a much better performance than the Canadian market that is fully legal. Yet, it has had serious delays in the market development due to heavy regulations.
Across the board, US cannabis stocks are becoming stronger amid the financial crisis. For instance, Market leading operators like Green Thumb Industries, Curaleaf and Trulieve have high hopes set on their product sales; some experts believe that all those companies will report over $100 million in revenue coming from the second 2020 quarter, which is quite an event as it will be the first US companies to pass this industry milestone. It is definitely a good time to consider investing in a cannabis venture.