How has the price of marijuana impacted stock prices?

The falling price of the marijuana flower has squeezed companies and pulled stock prices down in the process. Comparing Q3 numbers in 2022 to a year prior, the price of a gram of marijuana fell 13% from $10.83 to $9.43—the largest price decrease ever across a 12-month period.

Should you invest in cannabis stocks?

Aggressive investors with high risk tolerances, though, will probably find a lot to like about marijuana stocks. The cannabis industry is still in its early stages. The market opportunities are enormous, especially as more U.S. states legalize cannabis. Investing in these stocks is a high-risk but potentially high-reward proposition.

Are cannabis companies a risky growth stock?

Cannabis companies represent highly risky growth stocks. Most do not make profits, and hence we have limited our search to companies showing positive and growing sales revenue over the last three years, which is often used as a backup for profit. The one exception to this rule is Verano Holdings, which does not have sales data going back that far.