Young people are confident that demographic change will lead to
The Robinhood application, which measures the pulse of the most popular investments, has just published that the favorite company of the millennials to invest their money in is Aurora Cannabis, which manages to oust Apple. The Canadian company, dedicated to the manufacture and distribution of cannabis, accumulates a stock exchange evaluation of 15% in the last twelve months. Although this is not a very high figure, young people have confidence in this company, as Canada legalized the recreational use of cannabis and the United States is in the process.
It’s not only the millennials, but also the members of Generation Z (those born between 1994 and 2010) have made this company their favorite when it comes to investing their money. Beyond the company’s technical data, young people are confident that demographic change will lead to the legalization of cannabis worldwide and that this will result in companies such as Aurora Cannabis growing at a good pace.
Younger Robinhood users are more and more interested in increasing their exposure to the cannabis industry, as not only Aurora Cannabis is growing in popularity. Another cannabis company that experienced an incredible growth is Veritas Farms (OTC: VFRMD). The company produces high quality full spectrum Hemp oil products from its farm based in Pueblo, Colorado. The company just announced that they are expanding upon three key areas of its product portfolio with a focus on tinctures, balms and oils.
Also, Veritas Farms recorded $2.9 million in total revenue in Q2 2019, which is a 500% increase from the same period a year ago. Moreover, the gross profits reached $1,523,413 that is an increase by almost 800%.
These results have allowed Veritas Farms to rapidly expand operations and reduce liabilities by over $1.3 million. This growth has been driven by an aggressive plan to rapidly expand the company’s distribution network, which now includes over 4,000 retailers and partners.
Without going any further, ETFs or cannabis index funds have grown strongly in recent years reporting good returns for investors. For example, both the Horizons Marijuana Life Sciences ETF and the Alternative Harvest ETFMG have grown by 45% in the first quarter of 2019.
Aurora Cannabis shares, although still below 10 dollars (just under 9 euros), have a purchase rating of 71%, according to Bloomberg data. For this reason, some analysts point to this growing interest of young people in the cannabis sector as a new “gold rush”.
“Cannabis is probably one of the most attractive sectors in terms of investment if you look at growth prospects,” analyst Karnes told Fortune. That is why companies like Veritas Farms and Aurora Cannabis are the most promising cannabis companies on the market.