Pot stocks have continued to grow with a massive amount of strength in the past few years as legislation sweeps the nation. With high valuations, and a growing pool of investors it seems like the market has just begun to take hold. As marijuana stocks continue to rise in value, the market is progressing at quite a fast pace.
The Cronos Group, which is a Toronto based medical marijuana producer, recently announced their listing on the U.S. stock exchange. Analysts have stated that they expect the company to raise their revenue by as much as $34 million this year alone, which makes them one of the largest marijuana based companies around. The listing on a U.S. stock exchange will help to bring much needed exposure to the marijuana industry. In addition to bringing exposure, the listing on the exchange will help to give more legitimacy to the whole of the cannabis industry, which can often times be labeled as sketchy.
Chronos’s announcement comes only a short time after the ETFMG Alternative Harvest ETF which came into the public eye back on December 26th. This became the first ETF of its kind to be listed on such a major stock exchange, which continues to harvest investors into the market. Investors have already put as much as $400 million into the company, which they will use to continue a high rate of growth in the market. With ETFMG’s largest holding being Cronos, analysts expect to see a large amount of growth in both companies earnings over the course of the next year or so. Collectively, analysts have stated that they expect the revenue to reach as much as $446 million by the end of the 2019 final year. This is up from $44 million back in 2019, which represents an almost 914% jump in the value of the company.
Analysts have stated that they expect the marijuana industry to see a large amount of revenue growth overall in the next few years as legalization begins to hit the nationwide market. More and more states have pledged their devotion to giving their citizens the marijuana that they have stated they want, which will help to continue strong growth in the market.
Unlike more traditional growth companies, marijuana has less unknowns. Most growth companies are rooted in technology that has either yet to be created, or yet to be proven in itself. With marijuana, the growth is there and the technology is being made on a daily basis. The amount of new tech being created in the space has helped to make an entirely new market within the subcategory of cannabis. Cannabis-tech is something that has been growing for quite some time now, and continues to show strong growth into the future.
A poll by the company Gallop recently showed that as many as 45% of Americans have stated that they have tried marijuana. This represents the highest amount since the company began doing the poll in 1969. Given the high adoption rate for cannabis, it seems like the market it set to continue growing in a short period of time. As many as nine states have currently put in legislation to allow for recreational marijuana including Washington D.C. This continues to be a large step in the right direction, helping to show the government that the citizens of this country would like to have access to marijuana if they so choose to. As more and more states begin to put in legislation for legalization of marijuana whether it be recreational or medical, the atmosphere around cannabis is beginning to get more relaxed. The hopes are high that the near future will begin to see a high rate of adoption for cannabis on a nationwide level.
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