3 Chilling Headwinds Coming for Cannabis Stocks in 2023
After a ghastly year that's seen the AdvisorShares Pure U.S. Cannabis ETF (NYSEMKT: MSOS) fall by more than 74%, marijuana investors are desperate for a return to the heyday of 2021 when shares were skyrocketing. Alas, there is no relief in sight, and 2023 is likely to be almost as gloomy as 2022.
Here are three upcoming headwinds for the industry that explain why.
The number one headwind for cannabis stocks this year will be simply far too much marijuana on the market. When there's more cannabis than what the market demands, selling prices fall, and when they do, it compresses sellers' margins substantially, which makes their earnings reports worse. And barring any hype, the lagging earnings will likely drive share prices down.
Source Fool.com
