By Steven Voser


Key Points

  • Legislation is potentially the single biggest factor affecting cannabis stocks.
  • You can buy individual stocks or invest in ETFs.
  • The cannabis stock market is highly volatile.
  • Investing in cannabis carries the same challenges as all investments.

The cannabis industry has experienced rapid expansion in recent years, transforming from a niche sector into a significant market force. With increasing legalization efforts worldwide, the cannabis stock market is drawing attention from investors seeking new opportunities. But how does the cannabis stock market work, and what factors influence its growth?

This article provides a beginner-friendly overview of the cannabis stock market, key trends shaping the industry, and practical advice on how to invest in cannabis stocks wisely.

Note: We are not providing investment advice here. Rather, we are simply offering readers a basic overview of the topic.

Cannabis stock market

What Is the Cannabis Stock Market?

The cannabis stock market is made up of all the publicly traded companies that operate within the cannabis sector and can be invested in (i.e. in which anyone can purchase shares).

Ranging from cultivators and distributors to pharmaceutical firms researching cannabis-based treatments, it’s a diverse and vibrant market made up of everything from companies focused on the nuts and bolts of growing to those conducting cutting-edge research into how cannabis can be used in a medical context. So whatever your interests, there’s probably something for you there.

Following legislative changes (often for the better) throughout the world, this market is gaining traction among both institutional and retail investors as cannabis-related stocks are, in general, becoming increasingly valuable. Not only this, but there are simply more and more cannabis companies appearing, creating something of a startup boom.

If there was ever a time to invest in cannabis, it’s now.

Types of Companies in the Cannabis Market

Let’s take a deeper look at the types of companies you’re likely to come across in the stock market:

  • Cultivators and producers: Companies that grow and distribute cannabis for medical and recreational use.
  • Retailers and dispensaries: Businesses selling marijuana products directly to consumers.
  • Biotech and pharmaceutical firms: Companies developing cannabis-based medical treatments.
  • Ancillary service providers: Firms supplying equipment, packaging, or financial services to the cannabis industry.

Factors Influencing the Cannabis Stock Market

Several factors influence the performance of marijuana stocks, affecting investment decisions and overall market trends. While these are similar for most stocks, cannabis is particularly susceptible to certain factors that most stocks aren’t as affected by (such as legal changes). So you should know that while the marijuana stock market is exciting, it’s also incredibly volatile and uncertain.

Legalization

Regulatory changes are a major driver of the cannabis stock market. In fact, they’re probably the most important factor. Countries and states that legalize marijuana often see increased investment and stock market activity in the sector.

In a globalized world, changes in one region can have a big impact elsewhere. For instance, the legalization of weed in Germany—Europe’s biggest economy—signaled a significant change in European attitudes towards cannabis and had global impacts.

Market Trends

Consumer demand plays a significant role in shaping cannabis stock valuations. Take the boom in wellness-related marijuana products from the last decade or so. Before then, nobody knew what CBD was, and now, practically everyone has heard of it. Given that consumer behavior dictates where the money will go, this is also a huge factor. If people want to buy certain products, then their value will increase.

Pharmaceutical stocks are also increasing as marijuana becomes more explored as a possible source of medicine. It’s long been touted as such, but the medical community is finally seriously investigating it, which also means that there’s serious investment in this sector—and it’s likely to pay dividends.

Finally, the continued (and growing) love of recreational weed massively influences investment considerations wherever recreational marijuana is legal, so don’t underestimate the influence of people’s old-fashioned love of getting high.

Economic Conditions

Like all industries, the marijuana stock market is influenced by wider economic factors, including investor sentiment and risk appetite, interest rates and access to capital for cannabis firms, and broader stock market trends and sector rotations.

The cannabis industry is just one part of the whole global economy, and thus is affected by the winds that affect all stocks.

Cannabis market trend

How To Invest in Cannabis Stocks

For beginners, investing in marijuana stocks requires careful research and planning. Although it’s a volatile and relatively new sector, this also creates the possibility to strike gold. So if you’re willing to keep your head and accept risk, there is money to be made. Here’s a step-by-step guide for investing in weed stocks.

Step 1: Understanding Stock Exchanges and How to Find Cannabis Stocks

Marijuana stocks are listed on major exchanges such as the Nasdaq, New York Stock Exchange, London Stock Exchange, and Euronext. Some companies also trade on smaller exchanges or over-the-counter (OTC) markets.

You can also invest using the plethora of trading apps available these days. While these are best suited to novices, as they are simple to use and offer graded experiences, they also take higher commissions and come with other limitations. Still, for beginners, they are probably the best option.

Step 2: Research Companies and Evaluate Their Performance

You should never invest blind, and you should be wary of trusting your instincts. At its most ill-informed, investing is basically gambling, and even if you’re very well-informed, it’s still risky.

However, you can mitigate this risk by researching the companies before investing and also by taking a macro look at the entire marijuana industry, the economy as a whole, and the legal landscape. Even if one company appears to be doing well, it’s not going to be worth investing in if a recession is around the corner or the law is about to change in a way that’s prohibitive towards cannabis.

What’s more, you should also see which other companies are offering the same products or services as those you’re considering investing in, and how they are performing. If they’re floundering, why? Or, are they doing better than your company and likely to drown it out?

Before investing, analyze key metrics such as:

  • Revenue growth and profitability
  • Regulatory compliance and market positioning
  • Recent news and strategic partnerships

Step 3: Diversifying Investments Within the Marijuana Sector

Diversification reduces risk. Investors can spread their funds across different cannabis sub-sectors. This is about the long game and spreading the net wide. Of course, you could put all of your eggs in one cart and hope for the best, but if it doesn’t work, then you’ll lose all your capital. If, however, you diversify, you can afford to make some mistakes but will still eventually see a return on your investment if even one pays off.

Diversify in the following sectors:

  • Medical marijuana companies
  • Recreational cannabis firms
  • Ancillary businesses supporting the weed industry

Pros and Cons of Investing in Individual Stocks vs ETFs

You can invest in individual stocks or exchange-traded funds (ETFs). ETFs are investment funds that hold multiple underlying assets and can be bought and sold on an exchange, much like an individual stock. So basically, it diversifies for you.

Investing in Individual Cannabis Stocks

The pros of investing in individual cannabis stocks are:

Potential for high returns if a company performs well Greater control over investment choices
Ability to time the market Exposure to emerging companies

The cons of investing in individual cannabis stocks are:

Higher risk due to stock-specific volatility Requires in-depth research and monitoring
Regulatory uncertainty Liquidity concerns

Investing in Marijuana ETFs

The pros of investing in cannabis ETFs are:

Diversification across multiple cannabis companies Lower risk compared to investing in individual stocks
Managed by professionals with industry expertise Easier for beginners
Exposure to both large and small cannabis companies Potential for steady returns
The cons of investing in cannabis ETFs are:
Limited control over specific stock selection ETF management fees may reduce returns
Less opportunity for high gains Performance depends on the fund manager's strategy
Regulatory risks still apply

Risks and Challenges in the Cannabis Stock Market

Like any investment, cannabis stocks come with risks, including:

  • Regulatory uncertainty: Laws and regulations can change, impacting stock performance.
  • High market volatility: Cannabis stocks can experience dramatic price swings.
  • Ethical and environmental concerns: Investors may need to consider sustainability and ethical issues in cannabis cultivation.

In a politically unpredictable world, all investment is risky as it’s unclear where the global economy, or national economies, are headed. On top of that, it’s even more unclear where the pendulum will swing regarding cannabis regulation. In North America, where cannabis has been legalized for a longer time, it is more likely to remain that way. However, in Germany where legalization is only recent, it is far more likely that it could stall or even be reversed.

So the regulatory landscape is the biggest challenge facing those who wish to invest in cannabis.

Top Cannabis Stocks and ETFs to Watch in 2025

The market changes constantly, so use these suggestions as a starting point but make sure you do some further research too. That being said, here are some cannabis companies to watch in 2025.

Leading Cannabis Companies

Here are some of the leading cannabis companies for those who want to invest in individual stocks.

Canadian Cannabis Stocks

  • Canopy Growth Corporation: As one of the pioneers in the cannabis sector, Canopy Growth has established a significant presence in both medical and recreational markets. The company has been focusing on restructuring efforts to achieve profitability.
  • Tilray Brands Inc.: Tilray has expanded its global footprint through strategic mergers and acquisitions, aiming to strengthen its position in the international cannabis market.

US Cannabis Stocks

  • Curaleaf Holdings Inc.: Curaleaf is a leading US cannabis operator with a broad network of dispensaries and cultivation sites across multiple states. The company continues to expand its product offerings and market reach.
  • Green Thumb Industries Inc.: Green Thumb has demonstrated consistent growth with a focus on high-quality products and strategic retail locations. The company emphasizes operational efficiency and brand development.
  • Trulieve Cannabis Corp.: Dominating the Florida market, Trulieve has a strong retail presence and continues to expand into other states, leveraging its vertically integrated operations.
cannabis stocks comparison

Cannabis ETFs for Investors

ETFs offer a diversified approach to investing in the cannabis sector, encompassing a range of companies involved in cultivation, distribution, and ancillary services. Here are some notable options:

  • ETFMG Alternative Harvest ETF (MJ): This ETF provides exposure to a broad spectrum of global cannabis companies, including those involved in cultivation, production, and distribution.
  • AdvisorShares Pure Cannabis ETF (YOLO): An actively managed ETF focusing on US and Canadian cannabis companies, it encompasses various segments of the industry.
  • Global X Cannabis ETF (POTX): This ETF targets both medical and recreational cannabis firms, offering investors diversified exposure to the sector.
cannabis ETF comparison

The Future of the Marijuana Stock Market

Looking ahead, several factors could shape the cannabis stock market—one of which concerns federal legislative changes in the US. If cannabis was legalized nationwide, this would have huge implications domestically and globally.

Another significant factor is medical advancements. If cannabis is proven to have significant medical potential, then this will greatly increase the value of pharmaceutical stocks, and probably all cannabis-related stocks. Equally, if it was proven to have insubstantial medical value, then stocks would drop.

The fate of global markets is also going to be a crucial factor. Will more countries legalize cannabis, or will prohibition rear its head again? The international legal landscape will determine the future of cannabis stocks.

Is It Worth Investing in Cannabis Stocks?

Cannabis stocks are worth investing in for those who are able to take the risk. The whole industry has the potential to blossom and become even bigger than it already is, in which case it will pump out dividends. However, due to the legal situation surrounding weed, it could also crash. On top of that, there are all of the usual risks associated with investment to bear in mind.

So if you’re up to the research and have some spare capital, it’s certainly worth investing in cannabis stocks. But if you can’t afford to lose, then there are better ways to spend your money.

Cannabis Stock Market FAQ

What is the cannabis stock market?
The cannabis stock market consists of publicly traded companies involved in the cultivation, distribution, and research of cannabis products. These stocks are listed on major exchanges and OTC markets.
How does legalization impact cannabis stocks?
Legalization boosts investor confidence, increases market size, and drives stock prices up. However, regulatory uncertainty can also cause volatility.
What are the best cannabis stocks to invest in?
Top stocks include Canopy Growth, Tilray Brands, Curaleaf, Green Thumb Industries, and Trulieve. Performance varies based on market conditions and regulations.

What are the risks of investing in marijuana stocks?
Risks include regulatory uncertainty, high volatility, financial instability of some companies, and fluctuating consumer demand.
How can beginners start investing in cannabis?
Beginners should research cannabis companies, choose a brokerage platform, diversify their investments, and consider ETFs for lower-risk exposure.
Are there ETFs available for cannabis investments?
Yes, popular cannabis ETFs include ETFMG Alternative Harvest ETF (MJ), AdvisorShares Pure Cannabis ETF (YOLO), and Global X Cannabis ETF (POTX), offering diversified exposure.

Disclaimer: The information contained in this article is for informational purposes only and should not be considered as personal investment advice or a recommendation to buy, sell or hold any financial asset.

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Privacy Policy - Royal Queen Seeds

To ensure a safe online environment and guarantee adequate data protection, we strictly comply with all legal requirements. In this privacy statement, we provide information about how and for what purpose data is collected, safety measures, storage periods and contact details.


COMPANY NAME: SNORKEL SPAIN, SL (hereinafter ROYAL QUEEN SEEDS)

C/ Vilar d'Abdelà, 5 (nave 1) CP: 08170 de Montornès del Vallès

+34 937 379 846

support@royalqueenseeds.com


The present Privacy Policy sets out the terms on which we will treat personal data at ROYAL QUEEN SEEDS; this includes any personal data collected through our website https://www.royalqueenseeds.com/ as well as any other data we process in the course of our business activities.

ROYAL QUEEN SEEDS collects the following personal data for the purposes listed below:

SECTION 1 – PERSONAL INFORMATION WE COLLECT

1.1 Account purchases

Account purchases can only be made if you are in possession of a personal account. When you create an account or purchase something from our shop, as part of the buying and selling process we collect the following personal information that you provide to us:

This information is required for delivery. In addition, when you browse our shop, we automatically receive the Internet Protocol (IP) address of your computer. Based on this information, we can optimise your online experience and at the same time protect our online environment.

Purpose of data collection

We collect and store account-related data for the following purposes:

(a) to carry out obligations arising from any contracts between you and us, and to provide you with information, products and services that you may request from us;

(b) to set up, manage and communicate with you about your account and your orders;

(c) to conduct market research and analysis;

(d) to confirm your age and identity, and to detect and prevent fraud.

1.2 Newsletters

With your explicit permission, we may send you newsletters about our shop, new products and other updates. We send newsletters based on your explicit consent. In the event that you purchase a product, and in accordance with current regulations, we may send you commercial communications in accordance with the legitimate interest of our company, always about products or services similar to those you have purchased or contracted. In any case, you may exercise your right of opposition through the channels announced in this Privacy Policy. The following information is collected in relation to the newsletter:

We do not need to know the sex of the person in order to send the newsletter (data minimisation: by law we must ask for data that is strictly necessary to provide the service, and in this case knowing the sex is not necessary to send the newsletter).

Purpose of data collection

The data collected is used to:

(a) personalise our emails, including your name and gender;

(b) provide gender-specific content.

You can withdraw your consent at any time by using the link provided in the newsletter or the contact information provided in section 2.

1.3 Customer service and contact form

In order to provide appropriate support, our customer service employees have access to information related to the account. Consequently, their support will be highly effective and friendly. The data provided in our contact form is used by our CRM provider, SuperOffice. We will only use your details to respond to your message.

SECTION 2 – LEGITIMATE INTEREST

If you have purchased any of our products, please note that we may process your personal data for promotional purposes, based on Royal Queen Seeds' legitimate interest only to offer you products or services from our company and about products or services similar to those you have purchased. You may exercise your right to opt out of future messages by the means set out in this Privacy Policy or through any notification you receive.

2.1 How do you withdraw consent?

If you change your mind, you can withdraw your consent for us to contact you for the purpose of collecting, using, or disclosing your data at any time by reaching out to us at: support@royalqueenseeds.com.

SECTION 3 – DISCLOSURE

We may disclose your personal information if we are required to do so by law or if you breach our Terms of Service.

SECTION 4 – HOW LONG DO WE KEEP YOUR DATA?

At Royal Queen Seeds, we will not retain your data for longer than is necessary for the purposes described in this Policy. Different retention periods apply for different types of data; however, the longest period we will normally hold any personal data is 10 years.

4.1 Account information

Data relating to the account remains relevant for as long as the consumer is in possession of an account. Therefore, the data remains documented for as long as the account exists. When our customers delete an account, the associated data will be deleted within a reasonable period of time. Requests regarding the inspection or correction of stored personal data or the deletion of an account can be sent to support@royalqueenseeds.com.

4.2 Newsletters

In the event that you give us your consent to inform you about our products or services, we will keep your data until you express your wish not to receive any further communications from us. However, we regularly (every month) carry out a relevance check. Registered customers (and their personal information) will be deleted whenever customers do not reply to our request. In addition, our newsletter mailing has an opt-out feature. Consumers can withdraw their consent by using this opt-out feature.

SECTION 5 – COOKIES

Cookies are small information files that notify your computer of previous interactions with our website. These cookies are stored on your hard drive, not on our website. Essentially, when you use our website, your computer displays its cookies to us, informing our site that you have visited before. This allows our website to function more quickly and remember aspects related to your previous visits (such as your username), making your experience more convenient. At Royal Queen Seeds, we use two types of cookies: functional and analytical.

5.1 Functional Cookies

Functional cookies are used to enhance your online experience. Among other things, these cookies track what is added to your shopping cart. The use of these cookies does not require prior authorization.

5.2 Analytical Cookies

Analytical cookies are used for research and market analysis. The data collected with these analytical cookies is anonymous, making it unusable for third parties. The use of these cookies does not require prior authorization.

SECTION 5 – THIRD-PARTY SERVICES

Third-party services are required to conduct transactions and provide our services. In general, the third-party providers we use will only collect, use and disclose your information to the extent necessary to enable them to perform the services they provide to us.

However, certain third-party service providers, such as payment gateways and other payment transaction processors, have their own privacy policies regarding the information we must provide to them for your transactions.

We encourage you to read the privacy policies of these providers so that you can understand how these providers will handle your personal information.

In particular, certain suppliers may be located or have facilities located in a different jurisdiction than yours or ours. Therefore, if you choose to proceed with a transaction involving the services of a third party, your information may be subject to the laws of the jurisdiction in which that service provider or its facilities are located.

Once you leave our website or are redirected to a third-party website or application, you are no longer governed by this Privacy Policy or the Terms of Service of our website.

Web analytics service (anonymous data)

On this website we have integrated an element of a web analytics service (with anonymisation functionality). Web analytics can be defined as the gathering, processing and analysis of data about the behaviour of visitors to websites. An analytics service collects, among other things, data about which website a person came from (the so-called referrer), which sub-pages they visited or how often and for how long they visited a sub-page. Web analytics is mainly used for website optimisation and for a cost–benefit analysis of internet advertising.

Courier service

To complete deliveries we use a courier service. This courier service carries out the delivery between our company and the consumer's home. To complete these logistics, the company requires access to the consumer's name and address information.

Mailing service

Royal Queen Seeds uses a third-party mail service provider to send its newsletter. This provider has access to limited account information related to opt-in consent (e.g. email address).

Marketing services

Royal Queen Seeds has the support of a company that specialises in marketing and communication activities. Their access to personal information is very limited and mostly anonymous.

Payment services

At Royal Queen Seeds we use external payment services to handle our transactions (e.g. credit card payments).

SECTION 6 – SECURITY

To protect your personal information, we take reasonable precautions and follow industry standard best practices to ensure that it is not inappropriately lost, misused, accessed, disclosed, altered or destroyed.

If you provide us with your credit card information, the information is encrypted using secure socket layer technology (SSL) and stored using AES-256 encryption. Although no method of transmission over the internet or electronic storage is 100% secure, we follow all PCI-DSS requirements and implement additional industry standards that are commonly accepted. Information related to the account is protected with a hashing method. This method transforms the information into a generated hash. As a result, confidential information is protected and invisible, even to us. In addition, our databases are exceptionally protected against unauthorised access. For example, access to the database is only possible and permitted via approved IP addresses (e.g. from Royal Queen Seeds headquarters). Other attempts and addresses are rejected at all times.

Furthermore, data is anonymised as much as possible, so it cannot be directly linked to a specific consumer. With this data, however, we may be able to carry out market research and analysis. In addition, the third parties concerned (e.g. mailing service) are examined prior to our collaboration, comply with the GDPR from the EU and receive a processing agreement. Within Royal Queen Seeds, employees are assigned different access permissions. Specific permission provides access only to information that is strictly required to perform a task. Digital security measures are subject to change and must meet high requirements to ensure the safety of online customers. That is why, at Royal Queen Seeds, we appoint a security officer. Regular verification and improvement of security measures (where necessary) are part of the role.

SECTION 7 – CHANGES TO THIS PRIVACY POLICY

We reserve the right to modify this Privacy Policy at any time, so please check back regularly. Changes and clarifications will be effective immediately upon being published on the Website. If we make substantial changes to this policy, we will notify you here that it has been updated so you will know what information we collect, how we use it and under what circumstances, if any, we use and/or disclose it.

SECTION 8 – YOU HAVE THE RIGHT TO: