Yesterday Canada legalized recreational marijuana, as you're probably well-aware. And while that news brought joy to cannabis consumers throughout the country, there was one group of people even more excited than stoners: cannabis investors.
As Canada legalized recreational marijuana yesterday, the stock market responded to the various cannabis companies who are listed in exchanges around North America. Ironically, almost all of them actually dropped in stock price. The most prominent Canadian cannabis companies (Tilray, Canopy, Aurora and Cronos) all saw their shares slightly dip yesterday on their respective exchanges.
Analysts said this actually wasn't too surprising. Most of these companies had seen huge stock price gains in recent months after announcing major moves or acquisitions. So they had already seen their major bumps prior to legalization.
Experts also say that you shouldn't expect cannabis companies to go up too much in stock price in the near future. Canadian marijuana legalization will inevitably have some bumps along the road that will slightly hinder sales or affect profits. Once the industry starts picking up steam, that's when investors will flock back to the industry.
So right now may be the best time to invest in Canadian cannabis before it starts getting even more expensive.