The marijuana industry is on the verge of a paradigm shift, and some experts believe that this will be one of the most disruptive changes in the history of cannabis.
The best marijuanas stocks 2021 reddit is a subreddit that discusses marijuana stocks. They have been discussing the traditional marijuana stocks, which are better picks than the CBD stocks.
The Marijuana Industry’s Future
One of the things that piqued the interest of many investors (including myself) in the marijuana industry’s future was the abundance of growth opportunities. Marijuana businesses had a slew of new items to launch, all of which promised to improve their bottom lines.
Is it still the true in 2021, after many years of legalized marijuana in Canada, that investors are best served by concentrating on cannabis companies that deal with (cannabidiol) CBD?
Should customers put their faith in CBD derived from orange peels?
Allow me to elaborate.
Peels, the business founded by former NFL star Chris Hetherington, is a pioneer in that it will be the first to offer CBD oil made from oranges. (Source: Forbes, August 2, 2021, “Former NFL Player Launches First CBD Products Made From Orange Peels.”)
The business claims it can precisely duplicate the CBD molecule without any trace of tetrahydrocannabinol by using the terpenes found in oranges (THC). Peels also claims that their CBD oil is more consistent, pure, and stable than standard CBD oil.
I guess it’s a stretch to call Peels a marijuana business at this point, but it’s undoubtedly a CBD firm.
Peels has raised $4.0 million in seed funding, but I’m not interested in the business itself (though it does offer an intriguing product). Instead, I’m curious in what firms like Peels imply for the broader marijuana sector (and marijuana stocks).
Investors may select from a variety of CBD stocks (the majority of which do not utilize orange peels).
The first and most essential point to make is that in the cannabis industry, innovation is still alive and thriving.
Many new items have been released recently, ranging from CBD inventions to medicinal marijuana applications to innovative cannabis ingestion techniques.
Cannabis-infused drinks were formerly thought to be one of the most promising investments in marijuana stocks. I’ll be the first to confess that I was one of the early supporters, praising Canadian marijuana stocks anytime they collaborated with big beverage companies.
Cannabis-infused drinks, on the other hand, haven’t exactly taken off (when was the last time you heard of someone drinking one?). To be fair, the product is still in its early stages of development, so there is still room for improvement, but it hasn’t exactly taken the globe by storm.
CBD companies, on the other hand, have performed well, but are they better positioned than marijuana stocks?
Consider that by 2025, the CBD industry is projected to reach $19.5 billion. Ibid.) (Source: Ibid.)
By contrast, the legal marijuana industry is expected to generate $43.0 billion by 2025 (source: Forbes, June 18, 2021, “Legal Cannabis Market Projected To Rack Up $43 Billion By 2025”).
I used the word legal because I know there will likely be a marijuana illicit market for years to come. Pot stocks won’t be able to achieve their full potential until the illegal market is drastically reduced or eliminated entirely, which will be a lengthy process.
In any event, it seems that conventional marijuana equities provide greater profit potential than CBD stocks.
While CBD stocks have a lot of promise, I think they’re weaker than conventional marijuana companies in general, and not only because of their smaller market cap estimates.
The problem with CBD (at least for me) is that, as we’ve seen with cannabis-infused beverages, it’s more of a trend than anything else.
Is it well-known? Absolutely. Is it efficient and practical? Yes, according to a slew of research. Will it be profitable for businesses and CBD stock investors? Yes, I think so.
Is it, however, sustainable? That’s the answer I’m not sure about.
In other words, does CBD have the staying ability to become a long-term, staple cannabis (or orange peel) product, rather than simply a boutique buy or passing fad?
While I think CBD companies have the potential to grow in value, it’s difficult to gamble on “can” when you know conventional marijuana stocks will be there for a long time.
Because marijuana has been in circulation for thousands of years and people have been prepared to violate the law in large numbers to get it, there’s no reason to think that once the substance is completely legalized, the surge of people would dissipate.
To the contrary, increased marijuana use should be aided by greater availability and freedom from police harassment.
CBD, on the other hand, has the potential to be a one-hit wonder, a substance that excite people for a short time before dissipating.
Pot stocks, in my opinion, are far more long-term dependable since we already have decades of market research demonstrating that consumers like marijuana.
That isn’t to argue that CBD stocks aren’t risky; they simply have a higher risk profile than marijuana stocks, in my view.
Furthermore, in addition to conventional marijuana goods, most marijuana businesses offer a CBD line. That’s fantastic in my opinion.
What I’m most concerned about is a business that only sells CBD products. I believe a business like that is more susceptible to losing interest in its goods than one that concentrates on conventional marijuana items.
Expert Opinion
While the future of marijuana stocks contains numerous breakthroughs in a number of fields, CBD, cannabis-infused drinks, and other less-mainstream goods are much more susceptible to a drop in interest.
That isn’t to suggest that CBD stocks aren’t profitable; far from it. Simply said, if investors are seeking for long-term investments, it may be preferable to go with the tried and true conventional marijuana companies rather than CBD stocks.
Curaleaf stock is a marijuana company that has been in the business of medical cannabis and CBD products for quite some time. The company’s stocks have been on the rise, but it seems like traditional marijuana stocks are better picks than CBD stocks. Reference: curaleaf stock.
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