Cannabis stocks are in focus today following a somewhat tumultuous 4/20 holiday for the green companies. It’s a mixed day so far for the “high” operators as investors hope to see a rebound.
So what is going on with top names in the cannabis space?
Well, Wednesday marked 4/20, a sort of stoner holiday for cannabis connoisseurs that takes place every April 20. Despite this, most major marijuana stocks suffered minor losses on the day as part of a greater market slide.
Indeed, popular names like Sundial (NASDAQ:SNDL), Curaleaf (OTCMKTS:CURLF) and Trulieve (OTCNJTS:TCNNF) each saw at least slight losses on Wednesday. This was likely due to a market-wide downturn that followed Netflix’s (NASDAQ:NFLX) alarming earnings call. The streaming giant reported losing subscribers for the first quarter in more than a decade, sending the market into something of a frenzy.
Today, though, there may be new reason for optimism. So are the green machines finally seeing green?
Cannabis Stocks Look to Rebound From Disappointing 4/20 Slump
Despite Wednesday’s poor performance, many investors appear interested in cannabis companies on Thursday. The reason is that in New Jersey, a year after legalizing recreational use, pot sales begin today.
However, despite early gains from Sundial, Curaleaf and Trulieve, cannabis stocks are still in the red. GrowGeneration (NASDAQ:GRWG), Clever Leaves (NASDAQ:CLVR) and Leafly (NASDAQ:LFLY) are all down on the day as well.
Marijuana stocks have been up in the air for some time amid nearly constant whispers of federal cannabis legalization. Just this month a landmark bill passed the House of Representatives. Currently 18 states have legalized recreational use, with 37 states approving medical use.
With that said, marijuana is still classified as a Schedule I drug at the federal level. As such, the plant remains in a legal gray area. Investors have long considered the United States a potential cannabis cash cow. As it stands, recreational cannabis sales are projected to reach $25 billion by 2025. Should federal legislators pass a recreational cannabis law, that number could be much, much higher.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.