The comedown is beginning for the world’s most valuable cannabis company

Is the future so dope?
Is the future so dope?
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It’s been a month of ups, ups and still more ups for Tilray Inc., which this week became the world’s most valuable cannabis company after the US Drug Enforcement Administration approved its request to export medical marijuana. Now, after all these spurts, investors have been reminded of a nasty truth: Like elevators, see-saws, and spiders, what goes up must come back down again.

Tilray shares closed today (Sept. 20) at $176.35—higher than it was even a week ago, but an 18% drop on its close yesterday.

The tumble comes after nearly three months of growth in the Canadian company’s share price, and speaks to the relative volatility of this particular stock. As Ciara Linnane writes for MediaWatch: “The stock is more susceptible than others to massive price swings as it has a small number of shares outstanding, is seeing strong short interest and few investors can lend the stock to short sellers.”

There may be a broader lesson. Analysts and investors alike are beginning to wonder whether overheated cannabis stocks may be becoming “increasingly speculative” and a sign of an impending bubble. Either way, Tilray Inc.’s been on a strange trip—and those in the know seem to be opting to exit this particular ride.