How Have Marijuana Stocks Been Impacted By This Pandemic?
In the past four months, Covid-19 has had an incredible effect on marijuana stocks. Many popular pot stocks to watch like Green Thumb Industries Inc. (OTC:GTBIF) or Curaleaf Holdings Inc. (OTC:CURLF), have reported stock gains in the double and triple digit percentage points. Because of this, many investors have begun to take notice of pot stocks when they otherwise would not have. These stock gains only show a small picture of what is happening in the cannabis industry. Covid has helped to usher in a new and very high shift in the demand for marijuana flower and other products.
Companies like KushCo Holdings Inc. (OTC:KSHB), that produce cannabis products, have also seen a massive rise in demand. This demand shift has proven to be a potentially long term benefit to the greater cannabis industry. And while earnings are a solid place to start defining the future of the cannabis industry, they are by no means the be all end all of pot stock factors. In the short term, we know that this increased cannabis demand isn’t going anywhere. Because of that, investors should potentially buckle up for the long haul.
The American Cannabis Industry Reigns Supreme
Although marijuana is still federally illegal in the U.S., states have individually pushed their own successful cannabis industries. One cannabis company executive recently discussed how his business has changed during the pandemic. He stated that “in the vast majority of states, medical-use and adult-use cannabis have been determined by applicable government authorities to be essential businesses.”
This sentiment has stayed true and has helped to illustrate just how important cannabis is to the U.S. Major marijuana retailers in the country like Turlieve Cannabis Corp. (OTC:TCNNF) and Planet 13 Holdings Inc. (OTC:PLNHF), have been leading the charge when it comes to the retail sales of cannabis. The executive continued to state that “and while there certainly have been significant disruptions on state and local levels, the industry as a whole has demonstrated tremendous resilience in the face of one of the greatest health and economic challenges our country has faced.” Now, this helps to show how the cannabis industry is doing in the present day, but we should explore how it could change in the near future.
The Future Of U.S. Marijuana Stocks
Many U.S. based cannabis stocks like Acreage Holdings Inc. (OTC:ACRGF), have been working on long term strategies. There is no doubting the fact that the pandemic has done a lot of good for the cannabis industry. But, just how long can it stay this way? Well, many believe that the pandemic may have ushered in a new generation of cannabis users. And, this could stay for the long term.
Industry leaders do not expect demand to drop anytime soon, but rather that it could continue into the near future and beyond. For this reason, marijuana stock investors should always be looking in the long term as well as the short term. With this strategy, the potential for gains continues to be on the horizon. For now, however, investors should make sure that they are keeping up with the day to day happenings of the cannabis industry.