If You Invested 1000 in Cronos Stock One Year Ago Heres How Much Youd Have Now

Listen. Cannabis stocks were supposed to be the future right? Legal weed sweeping the nation. Generational investment opportunity. Get in early and ride the wave to riches.

Hows that working out?

If you invested $1000 in Cronos Group stock one year ago youd have… significantly less than $1000 now. The exact amount depends on when exactly you bought but probably somewhere in the $400-600 range. Maybe worse.

Cronos had a moment back when Altria the tobacco giant invested $1.8 billion into the company. That sent shares skyrocketing. People thought this was validation that Big Tobacco saw cannabis as the future. Which it probably is! But that doesnt mean every cannabis stock is a good investment.

The Canadian cannabis market got oversaturated fast. Too many licensed producers. Not enough demand at legal prices when the black market still exists and is often cheaper. Margins got crushed. Companies that were valued like tech startups turned out to be more like commodity businesses.

Cronos specifically has struggled with scaling production and hitting revenue targets. The Altria money helped but it also created expectations the company hasnt been able to meet.

The broader cannabis industry has been a bloodbath for investors. Companies that looked like sure things have gone bankrupt or seen stock prices fall 90% or more.

Does that mean cannabis is a bad investment forever? No. The industry will mature eventually. Federal legalization in the US would change everything. Some companies will survive and thrive.

But the “invest in any cannabis stock and get rich” thesis was always too simple. You had to pick winners and avoid losers. And most retail investors including me had no way to know which was which.

If youre still holding Cronos the question is whether you believe in the long term story or whether that money could work harder elsewhere. Only you can answer that.

Note: This is not financial advice. Do your own research.