Floundering Weed Stocks Test Wall Street’s Faith in 2024 Rebound

The case for investing in cannabis companies is, in theory, the strongest it’s ever been. Weed shops are popping up on street corners across the US at a frantic pace, while the 2024 presidential election offers an impetus for drug reform.

And yet the stocks underlying the industry are floundering, with even the bulls growing tired of waiting. An index tracking the shares of 100 marijuana-related companies has tumbled more than 15% so far this year, after touching an all-time low in October.

“The fundamentals don’t matter much at all, unfortunately,” said Dan Ahrens, managing director of Advisorshares Investments ...