Marijuana stocks present a tantalizing growth opportunity for investors. Worldwide cannabis sales are forecast to rise at a blistering compound annual growth rate (CAGR) of 25.5% from 2022 to 2030, according to Grand View Research. Legal marijuana is thus expected to be the fastest-growing industry in the world over this period. The bad news for early investors is that this rapidly emerging space is fraught with risk.
Canada's Tilray (NASDAQ: TLRY) is a perfect example of this stark contrast between the industry's stunning growth potential and its outsize risk profile. Tilray's management team is predicting a staggering 69% CAGR in terms of annual sales over the next three years. That kind of eye-popping growth ought to be attracting investors in droves. Yet Tilray's shares have been steadily shedding value due to falling profit margins, the slow pace of legalization in key geographies, and repeated bouts of shareholder dilution.
Is Tilray's stock a diamond in the rough?
Source Fool.com