Legal weed companies haven’t been seeing much revenue growth because the illegal market still dominates. We need safe banking and rescheduling, but the real growth for weed stocks comes from getting customers who were buying illegal weed into legal shops. 70% of the population already has access to legal weed in the us as either recreational or medical but they still buy illegal.
https://www.npr.org/2025/02/05/g-s1-46564/cannabis-market-illegal-weed-consumers
The change is happening now, I’m seeing more and more busts on illegal growers and a lot of money just got approved for border patrol so it’s going to be even harder to move weed into the US. The states could certainly help by lowering taxes and helping legal weed be more competitive price wise, but it looks like the risk of dealing in illicit weed is getting much higher.
https://www.koco.com/article/oklahoma-marijuana-operation-bus-mayes-craig-county/65218679
https://www.yahoo.com/news/drug-busts-border-ports-us-133636732.html
However big the illegal market is is how big weed stocks can grow, and it’s massive. You can confiscate and burn 100’s of 1000’s of pounds and not affect the street price at all, but imagine a company like green thumb all of a sudden getting 40k plants (that Oklahoma bust)worth of customers, it would be huge for them. I think we will start to see better earnings and revenue growth, not right away but by January earnings reports.
Published: 2025-07-06T13:04:17+00:00
Link: https://www.reddit.com/r/weedbiz/comments/1lt0qm7/tides_are_turning/
