‘More Ridiculous than Bitcoin’: Pot Stocks Go Parabolic as Crypto Markets Cool

The cryptocurrency markets are nine months into a bear market, but the animal spirits that drove the bitcoin price to nearly $20,000 haven’t disappeared. Rather, it seems that they have found a new outlet — pot stocks.

Pot Goes Boom as Crypto Goes Bust
Long a favorite of retail traders on commission-free stock trading app Robinhood, publicly-listed cannabis stocks have gone bananas in recent weeks, driven in part by the impending legalization of recreational marijuana in Canada on Oct. 17.

Publicly-listed pot stocks have been soaring across the board, but one cannabis producer — Tilray — has found itself flying higher than the rest.

At one point during premarket trading on Wednesday, Tilray shares went north of $235, representing a cryptocurrency-like 1,282 percent increase since the firm went public at $17 in July. At this level, Tilray had a market cap greater than $22 billion, representing a $91 million valuation for each of its 243 employees.

Equally as astonishing, the company’s market cap is 714 times as large as its most recent revenue figures, which showed that the company posted $28 million in sales. For reference, Amazon’s price-to-sales ratio is currently about 4.6. At this level, Tilray is also nominally more valuable than a large percentage of companies in the S&P 500 index, per Pension Partners, including social media giant Twitter.
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