Investing in Cannabis company Cronos Group (NASDAQ:CRON) isn’t an investment in what it’s doing now. Rather it is an investment in what the company might become in the future, as it rides the global wave of marijuana legalization. Amazon.com (NASDAQ:AMZN) was overvalued and bleeding money in its early days too, and look how well that trade turned out. But Cronos stock isn’t Amazon stock.
As a guy who was actually in this business when Amazon was conceived though, I’ll gently remind those who weren’t around at the time that for every Amazon that made it out of the dot-com bust, there were several names like Pets.com, Flooz, GeoCities and eToys, just to name a few that didn’t make it. The mob was just as bullish on those names as they were on Amazon at the time.
Point being, while many argued against my May 7 bearish thesis on Cronos Group, the argument still stands. It remains to be seen which, if any, of the hot marijuana stocks will still be standing and recognizable a few years from now. Of the ones with the best