Microsoft Has Entered the Cannabis Space

David Feldman  |


In a move seen by many as a major positive for the burgeoning cannabis industry, Microsoft (MSFT) has publicly announced a partnership with a software company in the space. That company, Kind, has developed software that helps state governments track growers’ and sellers’ compliance with their rules. Microsoft will work with them on that venture. Kind has other products including an ATM-type device to buy pot. As The New York Times reported reported, one advisor was thrilled to see such a major company “come out of the closet” regarding their involvement with cannabis. Others, like Oracle (ORCL), have entered but done so quietly.

It is certainly a challenge for major companies to announce they are potentially aiding and abetting a federal crime. But for so long as the Feds take the position they have - that they will not seek prosecution of those properly abiding by state cannabis laws - it seems OK for big companies to put a toe into the pond. And the future? At least four states will vote on recreational marijuana this year, including The Big Kahuna, California (okay, one could argue the Kahuna should be Hawaii, but give me some license here). Both Presidential candidates say that at the very least, they favor medical marijuana.

The article notes that industry revenues could grow from $4.8 billion last year to $6.5 billion this year. And maybe as big as $25 billion by 2020, especially if CA approves. And the research potential for treating and possibly even curing certain illnesses remains huge if the DEA re- or de-schedules marijuana as a Schedule I substance. So, the industry builds one giant company at a time…

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Companies

Symbol Name Price Change % Volume
ORCL Oracle Corporation 48.64 -0.26 -0.53 19,222,747 Trade
MSFT Microsoft Corporation 105.12 -0.83 -0.78 28,989,814 Trade

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