With marijuana regulations on the ballot, major players in the industry making big changes to their strategies, and many companies struggling to grow their sales, there's a whirlpool containing both danger and opportunity for investors. Since its announcement in late October that it would enter the U.S. cannabis market faster than previously planned, Canopy Growth's (NASDAQ: CGC) shares are up by around 45%, and there might be more to come. The cannabis cultivator's pivot to focus on the U.S. comes at a time when it's selling off its Canadian retail outlets, meaning that the Canopy Growth of 2023 and beyond will look little like what investors are accustomed to.
Recently, Zacks.com users have been paying close attention to Innovative Industrial Properties (IIPR). This makes it worthwhile to examine what the stock has in store.
It's been a mostly down year for cannabis stocks. The reasons for declining profits include a glut of cannabis, persistent illegal cannabis markets in some states that compete against legal cannabis growers, and complex regulatory environments in some states that include high levels of taxation for cannabis companies. A study by Grand View Research says legal cannabis in the U.S. will be a $40 billion market by 2030, after a compound annual growth rate of 14.9%.