Cannabis Stocks Seem To Benefit From Biden Win and Legalization
Cannabis stocks have spiked up since the election results were called.
It’s no secret to those following the news lately that the future of cannabis is looking bright following the recent U.S. elections. Not only did Democratic candidate Joe Biden win the presidential election, many states embraced legal and recreational cannabis, marking a change overall for legislation across the country.
In the wake of this success, cannabis stocks have taken a turn for the better, as would be expected. However, the numbers jumped pretty quickly. Tilray (TLRY) and Canopy Growth (CGC), two of the biggest cannabis stocks, were both up 10 percent. Aurora Cannabis (ACB) was up 20 percent.
Needless to say, this was exciting news for many in the cannabis sector and those who have found themselves on the green side of history during recent years. Projections are now looking good for the fledgling world of legal cannabis.
“We believe the Biden win is an important step on the path to federal permissibility of cannabis in the U.S. market through decriminalization and descheduling,” said Canopy CEO David Klein on a conference call with analysts discussing these rising numbers.
“The results of the ballot initiatives clearly showcase that support for adult-use marijuana legalization extends across geographic and party lines and is supported by a majority of Americans. Legal marijuana is becoming the American norm,” he explained. “This will likely increase pressure on Congress to pass major federal marijuana reform in the very near future.”
Curaleaf (CURLF), Aphria (APHA) and Cronos (CRON) were also up as of this past week, following the results of the election.
Cannabis industry insiders commenting on the stock increase noted that the new presidential election no doubt played its part as well, but still remained cautious as to how much of a real, positive impact the leadership change will have, as things could take a while to become official with new people in office.
“The Biden-Harris position is clear … I think it’s going to have to be a little more articulated on what the timing is,” said Aurora CEO Miguel Martin.
However, even if the Biden boost takes a while to pan out for the industry, many are feeling super optimistic that the U.S., like other countries, will now legalize because so much of the nation is now in favor of cannabis.
“What we see both in the US and globally is an increasing sort of openness towards THC-bearing cannabinoids and that bodes well for a company like Aurora,” Martin said.
CBD Is Celebrating Too
In addition to being great for the THC cannabis market, CBD insiders are rejoicing as well, as looser cannabis restrictions on the psychoactive plant definitely equal even more lax restrictions for its non-psychoactive cousin. Canopy just unveiled a line of cannabis products in Canada containing CBD, and many such brands exist in certain states. With a legislative change, they could tackle the nation-wide industry.
This sweeping win for legal cannabis in many states, an increased acceptance of medical cannabis, and Democratic leadership in the White House seem to spell good things for the cannabis industry, if stock prices are any indication.