WBA) expects its future will be big enough to make a point of wading into those waters now. It’s something that could move Walgreens stock at least a little.” data-reactid=”11″>Cannabis is still a moving target in the United States, meaning investors should take any quantitative outlook about it with a grain of salt. Even without knowing exactly what the future may hold for it though, Walgreens Boots Alliance (NASDAQ:WBA) expects its future will be big enough to make a point of wading into those waters now. It’s something that could move Walgreens stock at least a little.
Mike Mozart via Flickr
On Wednesday, the company announced to consumers as well as owners of Walgreens stock that it would soon offer CBD (cannabidiol) products in states where it was decidedly legal to do so.
It’s not a game-changer for the company, but it’s certainly a solid first step into what could eventually be a multi-billion market.
InvestorPlace – Stock Market News, Stock Advice & Trading Tips” data-reactid=”26″>InvestorPlace – Stock Market News, Stock Advice & Trading Tips
Leagalized Drugs and WBA Stock
Though now legal in some states for a myriad of reasons, at the federal level, all marijuana remains technically illegal. The DEA has chosen not to enforce those laws in states where legalization has been responsibly enacted however. This is a tacit acknowledgment that laws surround cannabis and its derivatives are complicated and incomplete.
To that end, the cannabis-based products Walgreens will soon be offering at 1,500 of its stores spanning nine states are a far cry from the recreational marijuana that’s put states like Colorado and Washington in the spotlight.
delivers multiple therapeutic effects. It’s commonly sold as an oil, which can be used to make a variety of products including edibles and pills. Sometimes it’s used dermatologically.
company only commented: “This product offering is in line with our efforts to provide a wider range of accessible health and wellbeing products and services to best meet the needs and preferences of our customers.”
Most likely though, the bulk of offering will look and be packaged like typical drugstore fare.
Opportunity Abounds
The company’s initial move into the cannabidiol arena may be on a small scale, with room to grow. Walgreens stock holders may soon see an expansion of that line.
worth $16 billion by 2025. Brightfield Group says $22 billion worth of revenue as soon as 2022 is possible.
The disparate numbers are largely a function of the newness of the discovery of CBD as a supermolecule that can do wonders for a body. They’re also a reflection of the fast-increasing understanding and acceptance of cannabidiol as something other of its once-maligned cousin marijuana.
federal legalization of closely-related hemp late last year, which at least paves the way for the true legalization of CBD-based products.
The world has become well educated about CBD’s health benefits, and that not all cannabis is psychotropic.
CVS), which announced just a day prior to Walgreens’ news that it was getting into the CBD business as well, in eight states. Many of CVS Health’s states overlap with Walgreens.” data-reactid=”41″>Walgreens’ decision also follows that of CVS Health (NYSE:CVS), which announced just a day prior to Walgreens’ news that it was getting into the CBD business as well, in eight states. Many of CVS Health’s states overlap with Walgreens.
RAD) has not yet introduced cannabidiol products at any of its locations, but may do so now that its top competitors have done so.” data-reactid=”42″>Rival Rite Aid (NYSE:RAD) has not yet introduced cannabidiol products at any of its locations, but may do so now that its top competitors have done so.
Bottom Line for Walgreens Stock
done $135 billion worth of business over the past four quarters.
it’s a market that is and will likely remain highly fragmented. Many consumers still prefer to make their purchases from small specialty shops.
Recent Comments