4/20 Marijuana Sales
Few drugs have their own holiday. In fact, about the only one I could think of is marijuana: 4/20. April 20 is a vaunted day in the stoner canon and has been for years now.
This weekend, 4/20 marijuana sales are likely to be very high, which could help spur growth in the subsequent quarterly earnings reports of cannabis companies.
This, after all, will be the first 4/20 with recreational marijuana sales being legal in Canada. Pot companies are likely going to exploit the day to their advantage.
Some projections have legal weed sales doubling on 4/20. (Source: “Pot Sales Expected to Double on Special Day: Cannabis Weekly,” Bloomberg, April 14, 2019.)
While marijuana stocks are not likely to see any substantial gains in the immediate aftermath of 4/20, the quarter that covers April could become a special one for marijuana companies in the years to come.
Think of 4/20 as being for the pot industry what the Christmas season is for big retailers like Amazon.com, Inc. (NASDAQ:AMZN). Sales generally surge at that time of year.
For cannabis investors, the 4/20 marijuana sales boost means the next quarter could very well be a vast improvement compared to the previous quarter.
In the long run, this speaks to the legal pot industry growing and becoming more stable as time goes on.
If 4/20 solidifies itself as a weed holiday, then we can start charting out predictable ebbs and flows in pot sales. That’s an important part of an industry maturing and will make it easier for investors to make projections from one quarter to the next.
While by no means a huge, game-changing event, it is indicative of an industry that is growing up day by day and is likely to become a powerhouse market in the near future.
The 4/20 marijuana sales boost is likely to benefit many marijuana companies in their next quarterly financial reports.
This day could also develop into a consistent annual sales bump for years to come, creating a pattern that investors can reliably predict and therefore plan for as the legal pot industry continues to grow.