Weed Stocks Have Gotten Ahead of Themselves, Analyst Says
*By Carlo Versano*
The bull run in cannabis stocks is "absolutely not" sustainable and is headed for a retrenchment, said Matt Karnes, founder of GreenWave Advisors, a research firm that specializes in the budding legal pot industry.
Shares of companies like Canopy Growth, Tilray, and Cronos Group ー all based in Canada ー have seen double-digit gains in the past week. Marijuana stocks have been caught up in a flurry of deal-making, partnerships, and acquisitions as the industry gains legitimacy.
Investors have been reacting to each new headline with knee-jerk enthusiasm, Karnes said. [Constellation Brands' investment in Canopy](https://cheddar.com/videos/corona-brewer-adds-cannabis-to-its-booze-business-in-4-billion-deal) is one example ー news of the deal sent shares of the target company up 30 percent ー but Karnes doesn't think the enthusiasm can continue at the same clip.
"The excitement comes from the potential of the marketplace, and we're nowhere near seeing what that marketplace looks like," he said in an interview with Cheddar Tuesday. "Let's see what sticks to the wall."
Companies that make a lot of money off beer sales, which are trending down, seem like natural suitors for cannabis makers, he said. Those are smart, defensive plays. But Karnes remains skeptical that these big beverage brands can refashion themselves as pharmaceutical companies by trying to enter the medical marijuana market.
He is bullish on cannabis long-term, though ー so much so, that he started his own research firm just for the sector.
Marijuana is set to become legal for adult recreational use in Canada this October. Karnes said it's an exciting moment for anyone invested in the growth of the cannabis industry, but it's still crucial to apply due diligence ー and not just buy on the rampant speculation.
He also said recreational and medical cannabis should be combined into a single sector that can be regulated by one authority.
"It's basically the same product, for all intents and purposes."
For full interview [click here](https://cheddar.com/videos/why-marijuana-stocks-are-soaring).
The Tony Awards on Sunday lured 4.85 million viewers to CBS, its largest broadcast audience in six years. CBS says Monday that Nielsen data shows the telecast — hosted by “Wicked” star Cynthia Erivo — scored a 38% increase over last year’s 3.53 million viewers. That’s the largest audience for the Tonys since 2019, when the telecast that year nabbed 5.4 million viewers and “Hadestown” was crowned best new musical. The latest version also had to compete with the second game of the NBA Finals, between the Thunder and Pacers,
After stumbling out of the starting gate in Big Tech’s pivotal race to capitalize on artificial intelligence, Apple tried to regain its footing Monday during a developers conference that focused mostly on incremental advances and cosmetic changes in its technology.
Six weeks before UnitedHealthcare CEO Brian Thompson was gunned down outside a Manhattan hotel last December, Luigi Mangione mused about rebelling against “the deadly, greed fueled health insurance cartel” and expressed that killing the executive “conveys a greedy bastard that had it coming."
Shaquille O’Neal and Allen Iverson once clashed on the court in the 2001 NBA Finals, but now the basketball legends are joining forces to revive the Reebok brand they helped make iconic.
Midea is voluntarily recalling about 1.7 million of its popular U and U+ Smart air conditioners because pooled water in the units may not drain fast enough, leading to mold growth.
