It couldn't end. Canada legalized the use, sale and cultivation of cannabis at the end of last year, and many US states also changed their minds. Weed companies went public and the shares of these major cannabis producers like Canopy Growth, Aurora and Tilray quickly went through the ceiling. Many investors invested in the 'green gold'.
However, weed shortages soon arose due to the growing demand for weed and, in some areas, weed surpluses. For example in Oregon where they produce much more than there is demand in the state. Due to these weed surpluses, the price fell drastically. Exporting is also not an option by laws and regulations in some states or territories.
As a result, you see a strong fluctuation in weed shares, which have rarely been stable and have an erratic course. Of course there are investors who have cashed heavily in the meantime, but how many have lost or are they finished? Then of course there are political and other external factors that influence the weed market. Question is? Where are the largest stocks when compared to a year ago.
Canopy Growth Corporation
After a number of peaks with the high point at the beginning of May being 2019 with more than 70 CAD (Canadian dollar), the stock fell back to a closing price of 28,34 CAD.
Tilray also has an erratic course in which, after a number of peaks, a steady decline has been initiated. The closing price of this share is now 24,38 USD (US dollar) where it was still worth 106,75 USD a year ago.
The persistent Aurora investor is also not doing well. After a number of increases, the share has halved in value after one year.
When you look at YoY, the large weed stocks have plummeted. Where will it go next time? Are golden times coming or will weed shares fall further? What influence will the legalization of weed in Luxembourg have on the market and what developments are coming?