TLRY - Have Marijuana Investors Just Given Up?
The cannabis industry has gone through a rough period lately. After building extremely high expectations in 2018 with the legalization of recreational marijuana in Canada, marijuana stocks suffered significant losses in 2019. Just when it looked as though 2020 might be a better year for the cannabis industry, disruptions related to the coronavirus outbreak added new challenges.
In light of the broader stock market's declines, it's easy to see the poor performance of cannabis stocks so far this year as simply reflecting the poor overall environment. There's something, though, that throws cold water on that theory. Many of the year's worst performers turned things around to produce the best gains in Tuesday's massive market bounce, but many of the biggest cannabis cultivators in the industry failed even to keep up with broader stock indexes, let alone lead the entire market higher. That's the latest sign that marijuana investors just seem to be giving up on the industry as a place to make money.
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