Cannabis stocks have plunged 50% from their highs earlier this year as a lack of movement in U.S. legalization efforts has triggered an exodus of retail traders from the sector.
Stocks are retreating after starting the year with a bang following Democrats seizing control of the Senate and raising hopes for federal legalization. The rally picked up steam in February as names like Tilray Inc. and Sundial Growers Inc. joined the growing meme-stock phenomenon, with both more than doubling in the course of three days that month.