The cannabis industry has been on a rollercoaster ride from the beginning, thanks to the perpetual overhang of regulatory uncertainty. But there's been a glimmer of hope for weed stocks after the U.S. Department of Health and Human Services recently suggested that marijuana should be moved from Schedule I to Schedule III. This might sound a bit bureaucratic, but it could mean big, positive changes for the industry in key areas like taxation, funding, and hiring. However, don't pop the champagne just yet; the DEA hasn't given the final nod, and even if they do, marijuana would still be subject to federal regulation.
So, how is this affecting stocks in the marijuana industry? Well, Canopy Growth (CGC) - the Canadian big shot that was the largest cannabis company in the world by market cap just a few short years ago - has fallen pretty far from its 2019 highs. Thanks to an inventory glut, regulatory red tape, and fierce competition, the shares have lost nearly 99% of their value since then, and they've also lost the support of Wall Street in the process.
