Looking Back at the Cannabis Industry and Pot Stocks in August
If we look at the bigger picture, the cannabis industry has changed dramatically in 2020. The major catalyst that pot stocks and the world have faced this year has been Covid-19. The pandemic has been an awful travesty for the whole world, but marijuana stocks have managed to come out better than before. Some pot stocks like Scotts Miracle-Gro Inc. (NYSE:SMG) and GW Pharmaceuticals Inc. (NASDAQ:GWPH) have reported very solid gains in that time period.
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Other more pure play pot stocks like Trulieve Cannabis Corp. (OTC:TCNNF) and Cresco Labs Inc. (OTC:CRLBF) have continuously recorded the bulk of industry gains during the past three to four-month period. But, in that time the cannabis industry has changed greatly. Many changes such as the function of retail marijuana locations and the production of cannabis flower have shifted greatly. And, with so many pot stocks fighting for the top space, a lot of the cannabis industry depends on the next few years and beyond. With that in mind, let’s take a closer look at the current state of the cannabis industry.
Retail Marijuana Stocks Play a Big Role
Before the Covid pandemic hit, the majority of the cannabis industry in terms of retail was based on physical cannabis sales. Since the pandemic, a lot of the physical cannabis operations have become purely digital. This means that e-commerce sales and ordering of marijuana has become supreme. With the greater demand that the industry has seen in that time, more people than ever have been going out to buy cannabis or having it delivered. This has made other ancillary pot stocks like Brinks Co. (NYSE:BCO), quite popular amongst investors.
But, the Covid pandemic has also proven that a large portion of the cannabis industry can be taken online. In addition, it has also helped to highlight some potential flaws as to where the industry could improve in the near future. Of course, cannabis sales cannot be done completely online. The majority of the online sales of cannabis relate to pre-ordering and for curbside pickup. E-commerce has been one of the only reasons that the cannabis industry has been able to survive in the past few months. Because of that, many believe the future of pot stocks and cannabis retail could be better than ever before.
Marijuana Stocks And The Cannabis Industry Shows Its True Future
The resiliency of the cannabis industry has shown itself in the past four months. During that time, many leading marijuana stocks have reported better than expected earnings. But, in order for the industry to succeed to the fullest extent, there has to be a great deal of legislative changes. In the short term, there are, of course, much more pertinent world events going on. In the long term, however, the pandemic has illustrated that there is an intense need for new laws to go into place.
Covid-19 is only one factor that has shifted the cannabis industry, but there are many others that could have impacts. This includes the presidential election in the U.S. which is coming up in November, alongside many other geopolitical events. With that in mind, investors should always be up to date on world happenings and potential future market affecting factors. With that in mind, the cannabis industry looks like it is in good shape to see potential future success.
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