In the past year or so, we have witnessed pot stocks completely reshape themselves. This is due to different factors. One is the shifting legislation and the shifting view of the cannabis industry in the eyes of the public. This means that pot stocks are incredibly volatile at the current point in time. Additionally, the infancy of the industry overall has contributed greatly to the large fluctuations with investing in marijuana stock.
These ups and downs have all but become characteristic of pot stocks. It is important to consider that the top pot stocks in the market are going through these changes first hand. Allowing these pot stocks to take the brunt of the volatility. Also, the fact that the cannabis industry is subject to see a massive amount of growth in the next few years. While this may not be reflected in present-day trading, it does look like the future is bright.
Pot Stock: Is a Bounce On The Way
MedMen Enterprises (MMNFF Stock Report) is one of the largest cannabis retailers in the U.S. market. The company is a vertically integrated producer of cannabis products as well as working in the retail front. The company has seen the issues of high taxes plague its business as many have chosen to turn to the black market.
Currently, many have stated that MedMen is burning through cash. One of the largest examples of this comes from the massive $230 million operating loss that they encountered during the last year or so. The company has also witnessed a lot of swings due to its business practices. MedMen reportedly was taking its employees tips for some time. This caused quite a great stir amongst the cannabis community.
Pot Stock: Another One On The Rise
Aurora Cannabis (ACB Stock Report is one of the largest pot stocks in the industry. The company is also the most held pot stock amongst millennial investors on apps like Robinhood. Despite this, the company has witnessed quite a lot of bearish sentiment in the past few months. Much of this is due to the Canadian cannabis market’s large supply issues.
With production ranging in the hundreds of thousands of kilograms, it has not been able to fight off the large issues in the greater market. The company also made a string of acquisitions that cost it most of its free cash in the past year or so. A company like Aurora Cannabis is one to look at in terms of the long term investment rather than for short term gains. With this view, it looks like it could move forward into the future but only time will tell. For now, investors should be wary of this key pot stock.