Cannabis shareholders should have their heads in the clouds today as shares in WEED Inc. (OTCMKTS:BUDZ) have grown by nearly 40%, bringing the share price to $12.15 as of 3.50PM. This will relieve company investors who checked in last Friday morning, which saw share prices slump as low as $7.15. Today’s rise brings their market cap to $1.209B.
What makes the cannabis market so interesting is its volatility and potential. After having been plagued for so long by legislative changes and governmental in-fighting, the US cannabis industry seems finally set for expansion as California officially legalized the drug for recreational use on January 1st. It joins 7 other states in doing so, while 30 states in total have legalized the sale or use of the drug in a broader sense, such as for medicinal use. Despite the Trump administration’s best efforts to further crack down on the use of marijuana, it seems that now may be the best time to invest in an industry that many predict will be worth tens of billions of dollars in the not-too-distant future.
Things are looking promising elsewhere too, as Canada last year announced plans to enact sweeping legislation that will legalize the recreational use of the drug across the country by July 2018. It is little wonder that investors are getting interested, and it’s not just WEED Inc. that is enjoying such a boost. Canopy Growth Corp. (TSE:WEED), the largest Cannabis company in Canada, today experienced a 17.24% rise, bringing share prices to an all-time high of $32.10 USD.
It is clear that the cannabis market is one of the most rapidly-growing industries out there, and as more countries and states get the green-light for medicinal or recreational use, demand will only increase and so will share prices. The numbers may wobble amidst the rise in the short term, but as a long-term investment, it is worth serious consideration. It will take some time for cannabis retailers and regulators to grapple with supply and demand, but for an industry still very much in its youth, shares are looking impressive.
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