Cannabis stocks, as measured by the Global Cannabis Stock Index, were quite volatile this year. The index gained in September, prompting a Q3 gain, but it fell in October, November and then in December too, losing 7.5% to 6.88 and leaving the index down in 2024:
In 2023, the index ended down 16.5% to 8.11. In Q1 of 2024, it rose 26.0%, declined 15.8% in Q2 and increased 2.2% during Q3. It ended the year by dropping 21.8% in Q4, and the index was down 15.2% in 2024:
Since the peak in February 2021, the Global Cannabis Stock Index has dropped 92.6% from the 92.48 closing high:
The strongest 3 names in December all rose by more than 6%:
- Kaival Brands Innovation (NASDAQ: KAVL): +26.9%
- WM Technology (NASDAQ: MAPS): +16.0%
- Leafly (NASDAQ: LFLY): +6.8%
Kaival Brands had a strong month but weak quarter, falling 18.4% in Q4. WM Technology soared back above $1.00 in November, leading the index, and then received an acquisition bid this month from insiders. It was up 58.6% in Q4 and soared in 2024. Leafly, which may have received interest after MAPS ran up, fell 25.2% during the quarter.
The 3 weakest names in December all fell by more than 29%:
- Innovative Industrial Properties (NYSE: IIPR): -38.9%
- Ayr Wellness (OTC: AYRWF) (CSE: AYR.A): -29.6%
- Canopy Growth (NASDAQ: CGC) (TSX: WEED): -29.2%
Innovative Industrial Properties, which reported a default from its largest tenant PharmaCann, ended 50.5% lower in Q4 and dropped 33.9% in 2024. Ayr Wellness, which led the way lower in November as well, dropped 74.0% in Q4 and was down 73.4% this year. Canopy Growth fell 43.2% during Q4 and dropped 46.4% during 2024.
The index was rebalanced as of quarter-end based on the prices and volumes a week earlier. It will decrease by 2 to 28 members. Returning to the index or joining it for the first time are Agrify (NASDAQ: AGFY), AgriForce (NASDAQ: AGRI), Flora Growth (NASDAQ: FLGC) and IM Cannabis (NASDAQ: IMCC). Exiting due to price and/or volume issues are AYR Wellness (OTC: AYRWF), Greenlane (NASDAQ: GNLN), iSpire Technology (NASDAQ: ISPR), Kaival Brands (NASDAQ: KAVL), Leafly (NASDAQ: LFLY) and TerrAscend (OTC: TSNDF) (TSX: TSND).
We will summarize the index performance again in a month and provide an update on the quarterly rebalancing. You can learn more about the index members and the qualifications for inclusion by visiting the Global Cannabis Stock Index. Be sure to bookmark the page to stay current on cannabis stock price movements within the day or from day-to-day.
New Cannabis Ventures maintains four proprietary indices designed to help investors monitor the publicly-traded cannabis stocks, including the Global Cannabis Stock Index as well as the Canadian Cannabis LP Index. The American Cannabis Operator Index, was launched at the end of October 2018 and tracks the leading cultivators, processors and retailers of cannabis in the United States. More recently, we introduced the Ancillary Cannabis Index at the end of March 2021, reflecting the increasing number of publicly-traded companies providing goods or services to cannabis operators.
