Amid a stock market rout on Oct. 10, shares of Aphria Inc., a cannabis producer, jumped as much as 17 percent after a report that tobacco giant Altria Group Inc. was interested in buying a stake in the company. Other pot stocks jumped on the news, and Altria’s shares rose, too.
Investors have been cannabis crazy, bidding up stocks in pot-related companies. The Bloomberg Intelligence Global Cannabis Competitive Peers Index rose 103 percent in the 12 months ended on Sept. 28, outpacing gold, Bitcoin, and the S&P 500. Investor enthusiasm hasn’t been hampered by the fact that most weed stocks lack earnings.
Outside the equity markets, though, pot is taking a little longer to catch on. Because it remains illegal on the federal level in the U.S., there are many barriers cannabis companies have to overcome before pot becomes a full-fledged financial asset.
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