Cannabis stocks have plunged this year, continuing a trend that has been going on in the past few years as the bubble bursts. Most of them have lost over 50% of their value this year, and are down by over 80% from their all-time highs.
Why cannabis stocks crashed
These companies have crashed because of Donald Trump’s election in the United States. Republicans also won the Senate and the House of Representatives, ruling out the passing of a cannabis bill in the country.
Cannabis stocks have also plunged as competition has risen from the mainstream brands and mom-and-pop stores. They also dropped because of the large losses they are reporting and the relatively slow growth in the industry.
This article highlights some of the top two cannabis stocks to sell, and one that could possibly bounce back over time.
Canopy Growth (CGC)
Canopy Growth is one of the top cannabis stocks to sell as it trades at an all-time low. It crashed to a low of $0.9473, down by over 65% this year, making it the worst performer in the industry.
Canopy Growth share price has plunged after the company reported weak financial results. Its numbers showed that the revenue dropped to $75 million in the fourth quarter from $88.6 million a year earlier. That is a sign that its demand has largely dried up.
Most importantly, the company has no path to profitability as its net loss jumped to over $127 million from $41 million a year earlier. Worse, analysts believe that the trajectory will continue this year, with the average revenue estimate for the last quarter being a 13% decline to $71 million. They expect its annual revenue will be down by 19.7% to $276 million.
Therefore, selling Canopy Growth stock price makes sense as demand wanes and the losses mount.
Read more: 5 Best Cannabis Stocks to Buy for Q2 2025
Curaleaf Holdings (CURLF)
Curaleaf Holdings is another cannabis stock to sell as its growth gains steam. Its stock has crashed by 45% this year and over 85% in the last 12 months. This crash has brought the total market cap to below $500 million.
Curaleaf’s business has deteriorated in the past few years, a trend that continued in the last quarter. Its net revenue dropped by 4% in the fourth quarter to $331 million. Also, its profitability worsened, with the adjusted EBITDA of $75.8 million being lower than a year earlier.
Curaleaf’s annual revenue was flat at $1.34 billion, while the adjusted net loss was $116 million. Analysts expect that Curaleaf’s first-quarter revenue will be $316 million, down by 6.75% from a year earlier.
Tilray Brands (TLRY)
Tilray Brands stock price has crashed by 53% this year and over 78% in the last 12 months. While most cannabis stocks have a bearish outlook, one can make a contrarian case for the company.
Tilray Brands has evolved in the past few years. It has moved from being a mere cannabis company into a diversified firm. It did that by investing heavily in the beverage industry.
It acquired several brands of alcoholic beverages from companies like Molson Coors and AB InBev. There are signs that these acquisitions are working out. For example, its quarterly revenue rose by 9% to $211 million.
Most importantly, these buyouts have made its business more diversified. Alcoholic beverages stood at $63 million, while its cannabis segment made $66 million. The distribution and wellness businesses rose to $68 million and $15 million.
Therefore, while Tilray Brands stock is risky, there are signs that it is a better one than most pureplay cannabis companies.
The post 2 cannabis stocks to sell, 1 contrarian buy: Tilray, Canopy Growth, Curaleaf appeared first on Invezz
