Stocks in marijuana companies climbed on Wednesday, with Tilray, a medical marijuana firm, hitting an all-time high of $214.06. (According to Yahoo Finance, the company’s stock hit $300 at one point but eventually fell after the stock’s volatility forced regulators to temporarily forbid trading of the company’s shares.)
By Thursday, however, Tilray was dropping quickly. The company’s shares fell more than 15 percent, bring the stock below $200.
While Tilray was undoubtedly the biggest winner on Wednesday, other marijuana companies also posted gains. According to a report from Reuters, shares of the Cronos Group Inc. and ETFMG Alternative Harvest ETF ascended as well. Both stocks continued to climb slightly Thursday, escaping the volatility of Tilray.
“It’s a situation where there’s a frenzy in the sector, but there is only a handful of things you can trade to try to be involved,” said Henry Schwartz, president at Trade Alert during an interview with Reuters.
Even with Tilray’s rise and fall, the overall outlook on marijuana stocks is generally positive.
The Coca-Cola Co. may also have its sights on the marijuana market. According to Reuters, the beverage superpower held discussions with Aurora Cannabis Inc., a Canadian marijuana firm, about the possibility of manufacturing “cannabis-infused beverages.”
According to a report from Yahoo Finance, the two firms failed to reach a deal; however, that doesn’t necessarily mean Coca-Cola is out of the weed game for good. A report from Business Insider quoted a representative from Coca-Cola as saying that the company is still “closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world.”
Other beverage companies have already stepped into the marijuana scene. According to Business Insider, Constellation Brands, the parent company of beer giants Corona and Modello, has invested almost $200 million in marijuana mega-firm Canopy Growth Corporation.
Canopy Growth’s CEO Bruce Linton explained during an interview with Business Insider that beverage companies finally realize the potential market for marijuana-infused offerings.
“Why are you having a beverage on a Friday night? It’s about a social lubricant,” said Linton during the interview. “I think they didn’t view themselves as a beverage company so much as an entity that provides those occasions with some kind of lift if you will — and that’s an easy way to look at cannabis, not as a threat, but as an alternative or additional.”
Linton also stated that not only will Canopy Growth partner with Constellation but that the company would produce its own in-house beverages as well, along with a variety of different marijuana consumables.
“We will definitely be making beverages, but since there is no alcohol there will be no calories, which means the pounding on your liver is effectively nil,” Linton said.
Currently, Canopy Growth’s stock is sitting at $51.60 per share, an increase of 4 percent from Wednesday.