Beautiful Virgin Islands

Tuesday, Jun 03, 2025

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
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
×