MJ - This Might Be the Death Knell for Cannabis Stocks
The stock market hasn't performed well over the past year, and cannabis stocks have been in the crosshairs for bearish investors. The pain has been widespread across the marijuana industry, with the ETFMG Alternative Harvest ETF (NYSEMKT: MJ) having lost more than half its value just since January 2022 and almost 90% since its peak in 2018.
Marijuana stock investors have held out hope that legalization efforts at the federal level in the U.S. could open up a huge new market and bring relief for suppliers that are dealing with gluts of cannabis products. Yet the rapidly changing conditions in the financial markets have had their own implications for those in the cannabis industry, and the latest news from marijuana-focused real estate investment trust Innovative Industrial Properties (NYSE: IIPR) is raising new concerns that weak business conditions could start to have a domino effect in financing as well.
Shares of Innovative Industrial Properties fell 15% Thursday morning just after the beginning of the regular trading session. The cannabis-focused REIT made an announcement about its operating, investment, and capital markets activity for the fourth quarter and the full 2022 year, and it raised concerns among shareholders about how the business is faring.
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This Might Be the Death Knell for Cannabis Stocks