The pot industry faces a "massive inflationary bubble," and that means investors have to be careful, a cannabis CEO told CNBC at the World Economic Forum in Davos, Switzerland.

"Many, many people are entering the cannabis space, which is terrific, but they actually have to have a purpose — they should be able to generate a business," said Bruce Linton, chief of Canada-based Canopy Growth.

"Everybody wants to be in the cannabis space, and I think investors have to be selective because … there will be a new name every week," Linton warned.

Marijuana stocks have picked up a strong tailwind in recent weeks, and investors are trying to decide which pot companies might be the best buys today.

Let’s take a look at Canopy Growth(TSX:WEED)(NYSE:CGC) and HEXO (TSX:HEXO)to see if one should be in your portfolio right now.

Earnings season is coming up and one company to keep an eye out for is Shopify Inc (TSX:SHOP)(NYSE:SHOP). The stock has been rallying over the past months and is up over 25% during that time. The stock has seen a lot of range activity over the past several months and could be due to break out sooner or later. How it performs in its next earnings report could determine its direction.

We’re about a month away from when the company is set to report its Q4 results, but given how volatile the stock has been, investors will want to start monitoring it now.

These marijuana companies may seek an acquisition.

Competition in the marijuana market is surging thanks to the legalization of the recreational use of cannabis in October 2018 in Canada, and the growing number of U.S. states that have approved its medical and recreational usage. With these developments, more companies are looking to acquire smaller competitors to stay ahead of the pack.

Legal cannabis in Canada is leading to a lot more growth than just flowers and leaves. The recreational and medical marijuana industries are laying some deep roots across the country, and no place is that more true than here in Toronto.

While the province’s largest greenhouses might be well outside the city limits, the companies that own them are finding a home in Toronto’s corporate culture.

We’ve rounded up five of them offering work in the Big Smoke, so get that resume ready.

Last summer, a few months before Canada legalized cannabis for recreational use, Canopy Growth Corp. bused a group of seniors from a nearby nursing home to its facility in Smiths Falls, Ont.

The idea, according to Canopy CEO Bruce Linton, was to let them observe how cannabis is grown and learn about the plant’s medical uses.

“They were really curious about the plant. They wanted to know what we were doing over here, what weed was all about, and how it could maybe help them through their ailments,” Linton said.

The global elite are on their way to the Swiss alpine town of Davos for the World Economic Forum’s annual gathering, but this year a new group is joining the party: the cannabis elite.

A bevy of company executives and former politicians — all of whom are now involved in the burgeoning legal cannabis industry — are expected to attend what is being billed as the first ever “Cannabis Conclave,” a three-hour lunch at an alpine restaurant only accessible by cable car.

Marijuana stocks may not have had the best year in 2018, but the one thing that really stood out was the maturation of the industry as a whole. Following months of debate, Canada finally passed the Cannabis Act in June, and officially legalized adult-use pot in October, legitimizing the marijuana industry as a valid business model. Within a few years, Canadian pot stocks should be generating billions of dollars in added annual sales.

Most investor focus was arguably on revenue and operating earnings growth as Aphria(TSX:APHA)(NYSE:APHA) released its Q2 2019 financial results on January 11, but besides the noted takeaways from the earnings report, I find this little detail quite interesting.

The issue relates to a recently closed acquisition by Canopy Growth (TSX:WEED)(NYSE:CGC).

Beleave Inc. (CSE:BE) (OTCQX:BLEVF), one of the Canadian cannabis stocks, announced recently that its wholly-owned subsidiary, Beleave Kannabis Corp., has received authorization from Health Canada to sell cannabis oil products from January 11, 2019. Health Canada has granted an amended license with modified conditions allowing the sale of cannabis oil under the Cannabis Regulations.