Cannabis stocks are soaring again

Canopy Growth (CGC) rose 6%, Aurora Cannabis (ACB) surged 25% and Tilray (TLRY) jumped 14% in early trading. Other cannabis stocks on the move include global cannabis leaders Curaleaf (CURLF), Aphria (APHA) and Cronos (CRON), which has a big investment from tobacco giant and Marlboro owner Altria (MO). The stock spikes are also following a broader market rally Tuesday.
Industry executives have publicly stated their happiness about the election outcome. The chief executive officer of Canopy, which has the financial backing of Corona owner Constellation Brands (STZ), was particularly upbeat about what the changes in the political landscape might mean for the industry.

“We believe the Biden win is an important step on the path to federal permissibility of cannabis in the US market through decriminalization and descheduling,” said Canopy CEO David Klein on a recent conference call with analysts.

“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 added. “This will likely increase pressure on Congress to pass major federal marijuana reform in the very near future.”

Despite the optimism,the industry faces roadblocks at the federal level, especially if Republicans maintain their Senate majority…

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