Weed stocks: Buy high, sell low

It's been a rough year for cannabis company stocks, even as more states move to legalize or decriminalize marijuana and pot dispensaries prepare to open on Long Island.

The Roundhill Cannabis ETF (WEED) has declined more than 70% since its launch last year on April 20 — also known as 420 Day, an unofficial pot holiday. The stocks it holds have lost investors nearly $12 billion in value. Similarly, the MJ PurePlay 100 Index, which includes 100 cannabis-related stocks, has shed about 65% in the same time frame.

Pot stocks have struggled after the industry was dealt a major blow in December when legislation that would have allowed more banks to work with legal cannabis companies was taken out of a $1.7 trillion funding measure.

Cannabis companies are also subject to the same tough consumer market, potentially weakening economic outlook and rising interest-rate environment that's weighing on other stocks. Curaleaf Holdings, for instance, has cut some staff, had a New Jersey license renewal declined and earlier this month said it misstated revenue in 2022 and 2021 financial statements. The stock, which fell 52% last year, is down another 45% this year.

Still, Wall Street is still largely bullish on cannabis companies and the industry in the long term. Curaleaf has 15 buy ratings, two holds and zero sells, according to data compiled by Bloomberg.