For anyone who watches marijuana stocks, surely could name the top five pot stocks with no issues. These companies have cemented the idea of what it means to be a modern-day cannabis company. With this, they have also run into quite a bit of trouble. This trouble presents itself in the form of continuous legislative issues, supply worries and more. But, as leaders in the cannabis industry this is to be expected.
These companies often suffer the brunt of market volatility. As the biggest pot stocks in the market, the companies are the most forward-facing cannabis businesses in the world. In addition, their multi-billion market caps mean that they are obtaining a great deal of attention. This means that anytime there is news coming in and out of the industry, these companies are often the most affected.
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With an industry as young as marijuana stocks, it seems as though market volatility is something that is well reported at this point. The infancy of pot stocks also means that the industry overall is subject to large fluctuations on quite a regular basis. But, moving into the future it seems as though we all want stability.
This means that more now than ever are we seeing traders begin to trade off of intrinsic value rather than speculation. This by no means shows that we are out of the water yet, but it is a great running start. For now, these two big-name pot stocks are definitely worth keeping a close eye on.
Is This Marijuana Stock Still a Big Player?
Canopy Growth (CGC Stock Report) is widely regarded as the largest pot stock in the industry. The company received a massive $4 billion investment a while back from Constellation Brands. This investment served as the starting point to launch new cannabis-infused beverages. But, disappointingly to investors, the company has only used this capital to make large acquisitions.
Currently, we have not seen many major updates on the cannabis-infused beverage front. Because of this, Canopy Growth is not a real target for investors looking to make gains in the current market. The company is continuing to burn through cash at an extreme rate. All of this should help to make a wise decision about where to go regarding Canopy Growth.
How This Pot Stock Fell From Grace
Cronos Group (CRON Stock Report) sits on the same pedestal as Canopy Growth. The company has had some major issues which include losing the majority of its value last year. In addition to this, the company also hasn’t used its massive influx of capital to make any big moves in the industry. Cronos Group seems as though it is still trying to find its way out of the muddy waters that it climbed into during last year’s trading.
However, the company does display some important factors about pot stocks as a whole. For this reason, the company remains a pot stock to watch, but maybe only to obtain a hands-on idea about the rest of the industry.
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