Wall Street Just Upgraded This Popular Pot Stock, but You Should Avoid It Like the Plague
To say that marijuana stocks have had a bad go of things over the past 10-plus months would be a bit of an understatement. The vast majority of cannabis stocks have lost at least half of their value since hitting their yearly highs during the first quarter of 2019, with some even pushing to multiyear lows.
Why, you ask? Look no further than the growing pains that the cannabis industry is contending with. Canada has dealt with both supply shortages and bottlenecks, which is keeping legal-channel weed out of the hands of consumers, while a number of key U.S. states are struggling with the wide pricing gap between legal weed and black market pot created by high tax rates on legal cannabis.
These struggles have been particularly apparent for shareholders of Aurora Cannabis (NYSE: ACB), the most popular pot stock in the world. Shares of Aurora are down about 85% over the past 11 months, with well over $7 billion in market cap being wiped out over that period.
Source Fool.com
