Please ensure Javascript is enabled for purposes of website accessibility

Florida’s Medical Marijuana Market Flourishes Amid the Pandemic

By Prosper Junior Bakiny - Jun 3, 2020 at 10:21AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Cannabis sales have risen significantly in the Sunshine State since the COVID-19 emergency began.

Florida has long been one of the most important cannabis markets in the U.S., and even amid the COVID-19 pandemic, the medical cannabis market continues to flourish there. According to Marijuana Business Daily, demand seems to be higher now in the Sunshine State than it was before the outbreak started. Case in point: In the first 10 weeks of 2020, medical patients in Florida bought an average of 2 grams of cannabis per week. In May, that average had climbed to 2.9 grams. 

Florida, like most states that have marijuana dispensaries, has categorized them as "essential businesses," which allowed them to remain open amid the emergency measures that were implemented statewide to slow the spread of the novel coronavirus. Dispensaries there have benefited as a result. During the first 10 weeks of the year, customers in Florida purchased an average of 22,800 ounces of legal weed per week. This average increased significantly starting in mid-March. For instance, during the 7-day period that began on March 13, marijuana dispensaries sold 36,400 ounces of weed. For the week that began on April 17, that figure had increased to 39,290 ounces.

Cannabis dispensary with a marijuana leaf on it.

Image Source: Getty Images.

This company could be Florida's biggest cannabis winner

Several major players are catering to the lucrative medical cannabis market in Florida, but Trulieve Cannabis (TCNNF 1.48%) is undoubtedly the most prominent one. This vertically integrated company boasts 47 dispensaries in -- and derives the bulk of its revenue from -- the Sunshine State. Trulieve Cannabis is one of the few marijuana companies that has posted consistent profits. During the first quarter, it reported total revenue of $96.1 million, up by 116% year over year.

And even though Trulieve Cannabis' earnings per share decreased slightly to $0.12 from the $0.13 reported during the year-ago period, thanks to the booming marijuana market in its home state, the company will likely post strong financial results in the coming quarters. Investors looking to profit from the growth of Florida's lucrative marijuana market would do well to consider buying shares of this cannabis stock.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Trulieve Cannabis Stock Quote
Trulieve Cannabis
$13.00 (1.48%) $0.19

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.