The World's Largest Marijuana Stock Has Investors Seeing Green, Despite a Second-Quarter Loss

In case you haven't noticed, marijuana stocks are on fire -- and with good reason. According to cannabis research firm ArcView, sales in North America for legal weed grew by 34% in 2016 to $6.9 billion, and they're expected to grow at a compound annual rate of 26% through 2021. If this prediction comes true, we're talking about a nearly $22 billion North American opportunity for investors by 2021.

While the greatest long-term growth potential lies with the U.S. market, over the near and intermediate term it's Canada that offers the most potential. Prime Minister Justin Trudeau introduced legislation in April designed to legalize recreational marijuana by July 1, 2018. Though there have been concerns about making Canada the first developed country to legalize adult-use weed, such as ease of adolescent access, it appears as if Trudeau's measure is on track to become law sometime next year. That could open the door to billions in added annual revenue, and also create an instant surge in demand.

Image source: Getty Images.

Source: Fool.com