"Today, 40 states allow medical marijuana, while 24 permit recreational use, covering nearly 55% to 60% of Americans. Yet, the hype faded fast. Pot stocks like Canopy Growth ( ), Tilray Brands ( NASDAQ:TLRY ), Aurora Cannabis ( ), and Cronos Group ( NASDAQ:CRON ) once hit multi-billion-dollar valuations - CGC topped $10 billion, TLRY nearly $20 billion."
"Oversupply, regulatory delays, and fierce competition crushed those dreams. Now, they trade as shadows of their former selves, often dipping into or near penny-stock territory: CGC at $1.34 per share; TLRY at $1.15 per share; ACB, $4.86, and CRON, $2.63. This morning, though, pre-market trading tells a different story. Cannabis shares are surging on fresh optimism, with CRON up 13%, ACB climbing 14%, and CGC and TLRY rocketing over 20% each. Here's why marijuana stocks are sparking up."
Cannabis stocks once attracted massive investment after Canada legalized recreational marijuana and U.S. states liberalized access. Today, 40 states allow medical cannabis and 24 permit recreational use, yet many early high-flying firms saw valuations collapse amid oversupply, regulatory delays, and intense competition. Iconic names now trade near penny-stock levels while recent pre-market trading showed sharp gains. The 2024 presidential outcome renewed expectations for federal changes such as rescheduling or legalization, which could unlock banking access and broader market opportunities. Federal prohibition still forces many operators into cash-only operations and heightens theft and operational risks.
Read at 24/7 Wall St.
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