Advertisement
Singapore markets closed
  • Straits Times Index

    3,224.01
    -27.70 (-0.85%)
     
  • Nikkei

    40,168.07
    -594.66 (-1.46%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Bitcoin USD

    70,920.75
    +1,757.42 (+2.54%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Gold

    2,254.80
    +42.10 (+1.90%)
     
  • Crude Oil

    83.11
    +1.76 (+2.16%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • FTSE Bursa Malaysia

    1,530.60
    -7.82 (-0.51%)
     
  • Jakarta Composite Index

    7,288.81
    -21.28 (-0.29%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

Weed stocks are tumbling as Canada becomes the 2nd country to legalize marijuana

marijuana store 2 dispensary
marijuana store 2 dispensary

David McNew/Getty

  • Canada on Wednesday became the second country to officially legalize marijuana.

  • Marijuana stocks were trading down by 4% to 9%.

  • Watch Canopy Growth, Tilray, and Cronos trade in real time.

Weed stocks were under pressure early Wednesday after Canada become the second country to officially legalize marijuana. The largest marijuana producers by market cap — Canopy Growth, TilrayCronos, and Aurora Cannabis — were trading down by 4% to 9%.

Here's the scoreboard:

ADVERTISEMENT

On Wednesday, Canada became the first G7 country — and second country in the world after Uruguay — to legalize marijuana for all adults. Each Canadian province has set its own age limit and rules on how to sell the drug — with some opting for storefronts and others pushing business online.

And while many Canadians may be celebrating their ability to freely use the drug, the coming legalization had been a boon for producers operating in the country as their market values exploded amid increasing interest from investors.

Canopy Growth, for example, has seen its market capitalization grow 128% to $12.2 billion after Constellation Brands — the beverage giant behind Corona beer and Svedka vodka — announced a $4 billion investment. Its rival Tilray has seen its market value explode by 555% over that time after making various supply deals.

On Tuesday, analysts at Benchmark said Canada's recreational cannabis market could reach 10.5 billion Canadian dollars by 2023 and suggested that Tilray would continue to lead the pack.

"We expect Tilray to acquire a meaningful share of the Canadian cannabis market based on initial supply agreements and through its first mover advantage in building production scale and strengthening national brands and products across a broad and expanding category," the analyst Mike Hickey said. He has a $200 price target for the stock — 26% above where shares settled Tuesday.

Tilray
Tilray

Markets Insider

NOW WATCH: Never eat the 'clean' part of moldy bread

See Also: