Cannabis stocks have been trapped in a terrible bear market for almost two years. But now the tide is shifting. I think cannabis stocks have hit a long-term bottom and are now entering a new, multi-year bull market.
The cannabis industry is thriving during the quarantine. Not only did the industry earn an essential designation, allowing it to continue operating during the quarantine, cannabis sales are spiking to a new all-time high as consumers stock up and blaze away the stress of a global pandemic.
This should be a pivotal week for the broader stock market and the cannabis sector. Global stocks are coming off a tough week – battered by the impact of coronavirus. The S&P 500 had its worst week since the financial crisis, falling 12% in five days.
Canopy Growth Corp (WEED, CGC), the largest cannabis company in the world, jumped 16% today after reporting third-quarter earnings that beat expectations and showed sharp improvements from last year. The strong report should set the tone for the next few months.
After struggling in the second half of 2020, cannabis stocks are off to a hot start in 2020. For example Canopy Growth Corp (WEED, CGC) is up 25% in 2020 and up 65% from the 52-week low in late November.
Joe Biden spooked the cannabis market last week. He called cannabis a gateway drug and said he needs to see more research before legalizing. Biden has walked those comments back – however – his comments left a lot of investors asking – Is Joe Biden good for bad for weed stocks?
Elizabeth Warren would be great for the US weed industry, she is one of the most pro cannabis politicians in the US. The senator from Massachusetts currently boasts an ‘A’ record from the National Organization for the Reform of Marijuana Laws (NORML).
We saw a flurry of earnings reports from leading cannabis companies this week and unfortunately the results fell short of expectations. That drove shares and the entire sector lower – hitting a new 52-week low. Today I will share what happened and what to expect.