In the U.S., thirty-one states have made medical marijuana legal, and nine states plus the District of Columbia have legalized pot for recreational use, propelled by a population of medical and rec users, but also by the investing community. Thirsty for the opportunity to get in at the ground floor, weed investors have driven upstart pot company stocks higher and higher with significant trading volume. So what is suddenly propelling pot stocks? Many factors dovetailed to move investing in pot stocks from the unconventional to the mainstream, meaning that everyday investor money is moving into these stocks.
This new market stands to generate $8.5 billion in consumer dollars annually, a number which will climb as applications multiply to an estimated $23.4 billion in 2022, say analysts at ArcView Market Research and BDS Analytics.
The nationwide legalization of recreational marijuana is a catalyst for much of the current hype surrounding pot stocks, most of which emanate from that country now, such as Canopy Growth, Aurora Cannabis, Aphria, and industry giant Tilray Inc. If other countries around the globe go the way Canada has and legalize weed, then the bud bulls’ bets will pay off big time.
Investments and interest from global beverage makers are further bolstering the budding business, as they throw their lines in the Cannabis waters in search of partners to infuse their drinks with extracts of the green plant. Constellation Brands, makers of summer favorite beer Corona, recently increased their stake in Canopy Growth to 38%, and Coca-Cola’s rumored talks with Aurora Cannabis had Wall Street and Bay Street paying attention.
Of course, particularly in the U.S., legal and regulatory are still in front of the industry and could be a significant barrier, although a whopping 64 percent of Americans polled said that marijuana should be made legal, according to a recent Gallup poll.