Let’s not get ahead of ourselves.
Before making bold proclamations about the state of the cannabis industry, we cannot forget we’re discussing an industry that’s only just begun blooming. The landscape five years ago isn’t what it is today, and what we’re seeing now will assuredly not be the same in 10 years. The history of this industry isn’t yet written, and we can’t profess too much about trends in such a nascent space.
While the coronavirus crisis has only illuminated the massive financial challenges entirely too many multistate, publicly traded cannabis conglomerates now face, it’s not the root issue — this problem has been brewing for some time. What investors truly need to be wary of is investing in companies with insane valuations that, in reality, are struggling to survive.
Boom — and Bust
Despite an initial increase in sales sparked by cannabis businesses being deemed “essential” in the face of the coronavirus crisis, and the fact that the industry remains one of the country’s fastest growing, momentum for many multistate operators is grinding to a halt. But let’s not blame the virus.