Why the cannabis industry has stalled for more than a year: Morning Brief

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Why the cannabis industry has stalled for more than a year

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The decade closed with cannabis stocks getting their comeuppance as part of the 2010s decade-ending mini-bubble trifecta: Blockchain, cannabis, and fake meat.In a note to clients published Monday, analysts at Stifel took a broad overview of the cannabis sector and outlined the challenges, and potential opportunities, facing these stocks in the year ahead.

Back in 2018, it seemed like every major consumer-packaged goods company was toying with the idea of cannabis or CBD products. In August 2018, Constellation Brands took a $4 billion stake in Canopy Growth , affirming to industry bulls the here-to-stay nature of cannabis and hemp products as the next great consumer category.

Jessica Rabe, co-founder at DataTrek Research, wrote Monday that 2020 still presents the cannabis space with a huge opportunity for clarity regarding its biggest business issue: Legalization in the U.S. Rabe also notes that several states — including Florida, Connecticut, New York, and New Jersey — could be looking at legislative or ballot-based pushes to legalize marijuana use.

 

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Too busy smoking.

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