How The Pandemic Has Shaped The Present Day In The Cannabis Industry
In just a few short months, the entire world was flipped on its head by the Covid-19 pandemic. While most markets had been adversely affected, marijuana stocks managed to escape with more than it came in with. For that reason, the past few months in the cannabis industry have actually been quite good for pot stocks. But, there are some ways in which this pandemic has affected marijuana stocks, that may not be as obvious. Of course, we all know that the demand for marijuana has shot up in the past few months. But, we haven’t fully discussed the other ways in which the Coronavirus has had a role in the cannabis industry.
It’s worth mentioning that it is extremely hard to identify anything concrete at this point in time. The pandemic is an ever-changing situation that continues to affect pot stocks and the cannabis industry in a big way. Although we more or less know what could happen in the next few months, the specifics arguably remain a mystery. For this reason, it is worth examining how the cannabis industry and marijuana stocks have been affected to this point, to see what may happen in the near future.
Pre March 2020 Was a Rough Period for Marijuana Stocks
Prior to March of this year, we saw major losses with many of the most popular pot stocks to watch. This includes the giants like Canopy Growth Corp. (NYSE:CGC), which shed a decent amount of value in only a short period of time. In addition to pot stock losses, a lot of companies found themselves in a tough position financially. Because of this, a lot of mergers and acquisitions that were supposed to occur, did not end up happening. Although this in itself is not an indicator of anything too bad, it has halted progress in the cannabis industry.
Mergers and acquisitions have become extremely popular amongst leading marijuana stocks. And with that, we have seen some companies become behemoths in their respective industries. Without this, it means that an avenue of growth may have been closed off for some time. But, it does seem as though we are in a better place currently in the cannabis industry. This means that there may be more options for marijuana stocks to have mergers and acquisitions in the near future.
Pot Stock Supply Chains Have Been Rocked
When we look at products producing cannabis companies, we see that a lot of these products are coming from China. One of the main product producers in the cannabis industry, KushCo Holdings Inc. (OTC:KSHB), has reported that there are massive halts in the time it takes to get products from China. This is understandable considering the current state of the pandemic, but regardless it does have a large effect on the cannabis industry.
Many believe that soon, the supply chain could once again regain its efficiency, but this may be a ways away. For now, all we can do is wait for factories to reopen, allowing product producing cannabis companies to once again, make a living. With all of this in motion, it appears as though we may see some bright times ahead for pot stocks and the cannabis industry at large.
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