The pot stock bubble has burst. Here’s why

“In a matter of months, white-hot cannabis companies have flamed out in spectacular fashion. Many have lost two-thirds or more of their value.

Widespread legalization has been thwarted. Bank financing has dried up. Deep-pocketed institutional investors remain on the sidelines and old-fashioned black-market dealers still provide stiff competition.

The pain deepened on Thursday, when Ontario-based Canopy Growth Corp. announced revenue that fell short of the lowest Wall Street estimate and a loss that one analyst called “astounding.” That sent shares to the lowest since December 2017. It’s still the largest pot company in the world, but at $7.1 billion its market value is just a sliver of the $24 billion it reached in April.”

Link to Source: https://www.bnnbloomberg.ca/cannabis-flameout-looks-almost-as-bad-as-the-dot-com-bust-1.1348989