Marijuana has been one of the most disappointing equity investments of all time. Most cannabis stocks have lost the majority of their value over the past five years due to a litany of trials and tribulations, such as the slow pace of legalization in the U.S.
, burdensome tax regimes, and supply chain mismanagement by several of the major operators. Still, most experts believe cannabis will eventually become legally permissible and broadly accessible for adults in key geographies like the E.U.
and the U.S. by the middle of the next decade.
Estimates vary wildly, but the general consensus is that the global cannabis market ought to be worth hundreds of billions by 2035. From a growth standpoint, global marijuana sales are forecast to rise by around 25% annually for the next 10 years, thanks to a steady increase in the number of territories legalizing the plant, as well as an uptick in the scientific research being performed on cannabis. Canadian cannabis cultivators Aurora Cannabis ( ACB ) and Tilray Brands ( TLRY ) have been at the forefront of this revolution ever since their home country legalized adult-use recreational marijuana in 2018.
As a result, both companies have seen their share prices crumble under the weight of the aforementioned pressures (see graph below). ACB Total Return Level data by YCharts Which one of these beaten-down Canadian cannabis stocks is the better long-term growth play? Let's dig deeper to find out. Aurora Cannabis: Angling for higher-margin medic.
