Originally reported by-Marijuana Stocks | Cannabis Investments and News. Roots of a Budding Industry.™
Leading Pot Stocks Show Positive Momentum
2020 has been a world-changing year with a few months left to go. With Covid, the entire world has been thrust into a situation that we have not seen in almost a century. Although Covid has adversely affected the world in more ways than we can count, marijuana stocks have been able to largely avoid this turmoil. Major pot stocks like Aurora Cannabis Inc. (NYSE:ACB), Trulieve Cannabis Corp. (OTC:TCNNF) and Curaleaf Holdings Inc. (OTC:CURLF), have been able to see growth during this time.
And not only has this growth been substantial for the companies, but it has been a solid sign for the cannabis industry at large. Entering into 2020, things did not look so great for marijuana stocks. Many big name pot stocks like HEXO Corp. (NYSE:HEXO) and OrganiGram Holdings Inc. (NASDAQ:OGI), had taken on big losses. But with a fresh start, investors were ready to once again put their money into cannabis. When the pandemic hit, cannabis businesses were deemed essential, leading to a newfound demand increase for the cannabis industry.
Analysis Shows That The Cannabis Industry is Growing
While growth is taking place across the board, marijuana growers like Village Farms International Inc. (NASDAQ:VFF), are taking the brunt of the industry optimism. A recent poll showed that between January and May, the cannabis industry shot up in size by as much as 45%. That is no small number and something that should not go unnoticed. Many investors have begun to believe that cannabis may be a recession-proof industry after all. In addition, in the U.S. we have yet to see the full effect of widespread marijuana legalization. For now, cannabis is only legal in certain states that have individually approved it.
By the end of this year, we may get a better idea of what the future of cannabis law will look like in this country. With cannabis being deemed essential during this time, demand for marijuana has never been higher. In addition, many who did not agree with the cannabis industry, now are in stark favor of it. The report showed that wholesale buying of cannabis shot up by as much as 35% in the first half of the year. With this type of growth, there’s no telling where the cannabis industry could go.
What Does This Mean For Pot Stocks Moving Forward?
The cannabis industry has evolved in more than one way over the past few months. For one, ordering and sales of marijuana have largely begun to take place online. With restrictions on businesses due to Covid, many consumers have shortened their in person waiting time, by preordering online. This has created a new business closely related to e-commerce for the cannabis industry.
In addition, more people are using cannabis than ever, leading to a greater chance at future legislation. While there is a great deal of uncertainties when it comes to the cannabis industry, we do know that growth is occurring one way or another. With that in mind, investors should continue to seek value where they can find it.
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