Cannabis industry may be shielded from tariffs, but faces challenges due to lack of federal legalization

From Nasdaq: 2025-04-16 05:30:00

Investors are worried about how tariffs will impact growth stocks like Nvidia and Apple, but the cannabis industry may be a safe haven. While cannabis companies may not be affected by tariffs, they face challenges due to lack of federal legalization in the U.S., making them risky investments.

Curaleaf Holdings and Trulieve Cannabis struggle with profitability but generate positive cash flow. The cannabis industry has seen a decline in valuations and growth prospects, making it a high-risk investment. However, investing in companies like Curaleaf and Trulieve could lead to significant gains if marijuana is legalized in the future.

Should you invest $1,000 in Curaleaf? The Motley Fool Stock Advisor team identified 10 top stocks for investors, excluding Curaleaf. These selected stocks have the potential to generate substantial returns in the long run. It’s important to consider the risks associated with investing in the cannabis industry before making a decision.



Read more at Nasdaq: 1 Underrated Growth Industry That Could Be Well Protected Against Tariffs