"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?"
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.
Read at 24/7 Wall St.
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