- Canopy Growth and Martha Stewart are joining forces to develop CBD products.
- Canopy shares jumped more than 3% following the news.
- Earlier this week, analysts at Cowen said they think the CBD market could explode from its current size of $1 billion to $16 billion by 2025.
- Watch Canopy Growth trade live.
Canopy Growth spiked more than 3% Thursday morning after the cannabis producer announced Martha Stewart was joining the company in an advisory role, helping to develop a new line of product offerings for CBD and other cannabinoids' uses for both humans and animals.
Rivals Cronos (+2.1%) and Tilray (1.6%) were trading higher following the news.
"Martha is one of a kind and I am so excited to be able to work alongside this icon to sharpen our CBD product offerings across categories from human to animal," Canopy CEO Bruce Linton said in a press release announcing the collaboration.
Thursday's announcement comes days after one Wall Street shop said it thinks the $1 billion CBD market will explode to $16 billion by 2025.
"By 2025, we believe CBD offerings could conservatively generate $16 bn in retail sales (assuming a ~40% increase in consumer incidence, to 10%, and spend of less than $2 / day)," Cowen analysts Eric Assaraf and Viven Azer said.
Thursday's rally is inflicting more pain on short-sellers in the marijuana space, who have been licking their wounds from a rough February. Through Tuesday, traders betting against marijuana stocks had suffered $192 million in market-to-market losses this month.
"If losses for cannabis short sellers continue to mount we should see continued short covering and added upward price pressure boosting the profits of a growing community of long shareholders," Ihor Dusaniwsky, managing director at the firm said in a note out Tuesday.
