Why Are Investors Shifting Away From Cannabis? Expert Says ‘They Don’t See It Feasible Compared To Other Markets’
As the cannabis industry matures, investors have begun re-evaluating the qualities they seek in companies, especially in light of ongoing regulatory hurdles. With cannabis stocks underperforming due to a lack of progress in banking and federal legalization, the investment landscape is shifting.
Jason Paredes, director and architect at Hearst, shared his perspective on how these trends affect investor behavior ahead of his appearance at the Benzinga Cannabis Capital Conference.
The Shift in Investor Priorities
Paredes explained that revenue and operations are now at the forefront of what investors are looking for in cannabis companies. “Investors need to be able to understand a company’s market and wallet share at the total actionable market (TAM) to their serviceable obtainable market (SOM),” he said. This focus on solid financial performance …