Marijuana stocks have been on fire lately, with investors looking at the rising tide of new jurisdictions in which marijuana is becoming legal for recreational use. With the entire nation of Canada legalizing recreational cannabis later this month, the companies that will provide the marijuana that users want to smoke see a potential gold mine ahead.
But there’s another area of the cannabis market that’s only now starting to get more attention. Both well-established cannabis companies and new upstarts are moving full speed ahead to develop consumer products that could potentially have a much larger addressable market than those who want to smoke weed. Along the way, investors in companies like New Age Beverages (NASDAQ:NBEV) and India Globalization Capital (NYSEMKT:IGC) have seen their shares soar — and even more gains could lie ahead for those seeking to develop and sell drinks infused with cannabidiol (CBD).
What is CBD?
Cannabidiol is a chemical compound that’s found naturally in marijuana. Unlike other compounds found in marijuana, especially tetrahydrocannabinol (THC), CBD lacks the extreme psychoactive impacts associated with cannabis use.