Beautiful Virgin Islands

Sunday, Apr 05, 2026

Sell-off in marijuana stocks reminds Tom Lee of bitcoin and the dotcom bubble

Sell-off in marijuana stocks reminds Tom Lee of bitcoin and the dotcom bubble

After rallying in 2018, cannabis stocks are poised to end 2019 down sharply.
Tom Lee says the cannabis sector’s performance appears similar to the bitcoin craze and the height of the dot-com bubble at the turn of the century.
he mania and then share-price descent in marijuana stocks reminds market pro Tom Lee of two other big crashes, in 2018 and the early 2000s.

The Fundstrat Global Advisors managing partner told CNBC on Monday that the cannabis sector’s performance appears similar to the bitcoin craze and the height of the dot-com bubble at the turn of the century.

Lee didn’t go so far as to say that a bubble was bursting in the marijuana sector. But he said the industry reminds him of some of the early internet business models, which he described as a sort of “profitless prosperity.”

“There might be a growing demand, but until someone can really capture value properly, it’s going to be tough to be creating something that generates sustainable return and equity,” Lee told “Closing Bell.”

Some analysts have pointed out for a while that the pot industry was reminiscent of bitcoin’s run, beginning in 2017.

Like the marijuana sector, cryptocurrency became a huge phenomenon and sparked excitement among investors. Bitcoin skyrocketed from about $3,600 per coin in 2017 to more than $19,000 in December of that year. Throughout 2018, bitcoin plunged, and it closed the year at around $4,000. Bitcoin currently has a market value of a little more than $130 billion.

After the bitcoin craze fizzled, some investors believed cannabis stocks were the next big growth area.

But the pot sector has struggled amid the slow rollout of retail stores in Canada as well as uncertainties related to regulations in the United States.

Shares of the largest marijuana companies soared in 2018 but are all poised to end this year down sharply. Canopy Growth, the world’s largest publicly traded cannabis company by market value, has plunged 64% from its all-time highs and is down around 26% for 2019. Tilray is down more than 75% this year, while Aurora Cannabis is nearly 60% lower.

The industry hopes the recent introduction of Cannabis 2.0, marijuana derivatives including edibles and beverages, will create excitement and generate sales.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
Bank of England Signals Caution as Bailey Advises Markets Against Expecting Rate Hikes
UK to Convene Global Coalition to Restore Shipping Through Strait of Hormuz
Trump Signals Possible NATO Reassessment, Emphasizes Stronger U.S. Strategic Autonomy
Australia Joins British-Led Efforts to Reopen Strait of Hormuz Amid Escalating Tensions
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
×