Cannabis stocks experienced a massive surge in 2018–2019 as investors bet on imminent federal legalization, lifting firms like Canopy Growth, Tilray, and Aurora Cannabis to multibillion-dollar valuations. Federal legalization has not occurred, and despite 45 states permitting medical or recreational marijuana, federal prohibition keeps companies volatile and largely unprofitable. Recent political developments — President Trump's comment about rescheduling within weeks and a Democratic bill to deschedule cannabis — produced sharp one-day gains for major names, followed by a retreat the next day. The pattern underscores persistent market volatility and raises doubts about whether hopes for federal action alone justify investment in cannabis equities.
Once hailed as the "next big thing," cannabis stocks in 2018-2019 were the artificial intelligence stock darlings of their day, riding a wave of euphoria over impending federal legalization in the U.S. Companies like ( ( Canopy GrowthTilray BrandsNASDAQ:TLRY), and Aurora CannabisNASDAQ:ACB) saw valuations soar into the billions as investors bet on a green revolution. Yet, years later, federal legalization remains elusive, leaving the industry in a haze. Despite 45 states legalizing marijuana for medical or recreational use, federal restrictions keep cannabis stocks volatile and unprofitable.
Yesterday, a spark reignited: CGC surged 24%, TLRY jumped over 7%, ACB climbed 5%, and ( Cronos GroupNASDAQ:CRON) edged up nearly 2%. President Trump recently said he would make a decision on rescheduling marijuana "within weeks" and Congressional Democrats just filed a bill to deschedule cannabis entirely . Today, though, these stocks are all in retreat with shares falling sharply. That raises the question: Is it still worth betting on federal action?
Collection
[
|
...
]