Large market caps are not always the best indicator to use when finding a marijuana stock to buy. Yet it can help to begin building a list. The cannabis industry as a whole has definitely seen better days, but with the recent bearish sentiment, it could be the time to find some top pot stocks at bare bottom prices. Currently, we are struggling with issues from the Coronavirus, which have plagued all world markets. Today however on Tuesday, March 10th, many pot stocks saw large gains bringing them back into the front lines. This is not to say that we are out of the water, but the signs are good for some future growth. The main focus of the cannabis market is on the U.S. and Canada.
These two countries have the largest marijuana markets in the world. Most of this is due to legislation, if not all of it. But, in these markets, we see all of the marijuana stocks with over $1 billion in market cap. Large pot stocks are known to be quite volatile which is something to watch out for if you aren’t watching your portfolio on a daily basis. But, there are solid strategies for both long and short term traders. Because of the current state of the industry, it is best to tread carefully when looking for an interesting pot stock to watch. These two companies continue to have the largest market caps in the industry.
The Largest Pot Stock by Far
Canopy Growth (CGC Stock Report) is and has been the largest pot stock in the industry. The company currently has a market cap north of $5.3 billion which is quite substantial. Back in its heyday, that number was over $15 billion, but volatility and rampant price swings have taken their toll. The company currently has a free cash amount of just over $2.2 billion which is mostly due to the sizable investment that was made into the company only a year or two ago. Since that time, however, it has been nothing but continued operating losses.
The company has had quite a lot of troubles in the past few weeks with massive layoffs and the shutdown of over 3 million square feet of production space. We’ll see if this is able to curb the company’s free-spending, or if this effort will simply be surpassed by the company’s massive losses. Regardless, the company is still the largest pot stock in the industry which is worth noting.
How Large Is This Marijuana Stocks Market Cap
GW Pharmaceuticals (GWPH Stock Report) is not a traditional pot stock by any means. The company receives a majority of its income from outside the cannabis market as it is a producer of a large number of pharmaceutical drugs. The main reason for its entrance on this list is its drug known as Epidiolex. The drug, which uses CBD to help treat rare forms of epilepsy, has received commendations from around the medical world for the past few years. It is also one of the first pharmaceuticals utilizing cannabis compounds to be approved by the FDA in the U.S.
As a non-pot pot stock, the company is less exposed to the high price swings that we have seen wreak havoc on other major cannabis companies. This is not to say that it isn’t a volatile choice, just less than other more involved companies may be. The company is now working on the production of several new drugs which should help to continue pushing forward momentum, but truly, only time will tell.
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