Why Cannabis Stocks Like Canopy Growth and Cresco Labs Plummeted Today
Investors were hardly getting a buzz from marijuana stocks on Wednesday. Many titles in the sector were hit with sell-offs, including but by no means limited to Canopy Growth (NASDAQ: CGC), with its queasy 13% decline, and Cresco Labs (OTC: CRLBF), which tumbled by nearly 6%.
The continued stagnation in a crucial government body was a key reason for the fall in the sector. Stocks in other sectors fared better on the day, with the S 500 index dropping a relatively benign 1.3%.
In order for the North American cannabis business to reach a much higher degree of viability, de facto legalization needs to occur in the U.S. There's a lot of support for cannabis rescheduling -- i.e., moving it to a less threatening category in the Drug Enforcement Agency's classification system -- on both the political level and among the public.
Source Fool.com
