What The Coronavirus Could Do To Pot Stock Prices And The Cannabis Industry
As we enter into yet another month of a COVID stricken world, what can we begin to tell about the future of the cannabis industry? In the past few months, we have witnessed many marijuana stocks come back from the grave. Because of that, cannabis stock investors have found a renewed interest in the cannabis industry. When talking about pot stocks, it’s important to look at both the U.S. and Canada as the main hearths of growth in the industry. For Canada, we have witnessed a lot of growth since mid-March. This growth has occurred not only in terms of cannabis demand but in the balance sheets of many leading marijuana stocks to watch.
Last month, there were some losses accrued, but this seems to be attributed to short term volatility. In the U.S., we have witnessed a very similar market trajectory. During that time, demand for cannabis has shot up greatly and looks like it may continue to do so. But, it is extremely difficult to predict the short term in the industry due to Covid’s unpredictability. With the U.S. being hit harder than ever by the coronavirus, it seems as though the next few weeks will be crucial to the market’s success.
Looking At The Numbers For Both The U.S. And Canadian Cannabis Industries
In Canada, sales for recreational cannabis hit as high as $180 million for the month of March alone. That number represents an almost 20% increase from the month prior. But, for April, that number stayed about the same. We have not witnessed trends like this since the cannabis industry’s inception, but COVID has again, made things wildly unpredictable. Leading pot stocks to watch like Canopy Growth Corp. (CGC Stock Report) and Aurora Cannabis Inc. (ACB Stock Report), have also had a tough time prior to April. But, since mid-March, we have also watched leading pot stock prices shoot up by very substantial amounts. As far as the U.S. is concerned, the numbers have continued to go up in a good way.
As people lose their jobs and are forced to stay at home due to this terrible tragedy, more people have turned to cannabis than ever. Statewide cannabis industries continue to hit record high numbers which is a good sign for the industry, and maybe not so good a sign for the public. States such as Oregon have hit record high sales numbers for CBD products as well, showing massive amounts of potential there. This data should simply serve to show just how unpredictable the current state of marijuana stocks is.
The Future Of The Cannabis Industry And The Key Take-Aways
It seems as though it is too soon to predict what will happen in a more long term period of say, six to ten months. But in the short term, we should continue to expect more volatile swings in the industry. Investors should watch for the results that leading pot stocks put out. These can be used as a gauge for not only where a company is headed, but where the cannabis industry is headed as a whole. Although uncertainty is not something many like to hear, it is undoubtedly in full swing in the cannabis industry right now. With that, investors should remember to keep a close eye on the market moving forward.