Should You Give Up on Curaleaf Holdings?
Cannabis investing is a long-term game. Savvy investors understand that investing in cannabis stocks requires a high tolerance for risk. Cannabis stocks performed poorly in 2022, and this year has not been kind either. However, the industry is rapidly expanding as more countries, along with more U.S. states, legalize cannabis and the potential market grows. According to Allied Market Research, the global cannabis market is expected to grow at an annual rate of 20% until 2031.
However, it's a highly competitive and volatile market, and only stable and profitable companies with disciplined growth strategies are likely to survive. Massachusetts-based Curaleaf Holdings (OTC: CURLF) has been a dominant force in this space, but can it keep its winning streak going? The first-quarter results of the multi-state operator (MSO) offer some clues.
Curaleaf leads the cannabis industry in the U.S., with $1.3 billion in total revenue reported for 2022. While most MSOs have struggled to grow their revenues in recent quarters, Curaleaf's top line increased 14% year over year to $336 million in the first quarter of 2023.
Source Fool.com
