Cannabis stocks soar as Georgia Senate elections boost investor hopes for decriminalization


Aurora Cannabis
An Aurora Cannabis employee in a grow room in Alberta, Canada, in 2018.

  • Pot stocks jumped on Wednesday as Democratic victories in the Georgia runoff elections boosted investors’ hopes for near-term decriminalization.
  • The Democrats Raphael Warnock and Jon Ossoff won their races, giving the party control of the Senate, according to projections from Decision Desk HQ and Insider.
  • Slim control of the Senate lifts Democrats’ chance of decriminalizing marijuana at the federal level.
  • Tilray soared as much as 19.1%. Aurora Cannabis and Canopy Growth climbed 16.5% and 17.7% at intraday highs.
  • Visit Business Insider’s homepage for more stories.

Pot stocks rallied on Wednesday as the results of Georgia’s Senate runoff elections lifted investors’ hopes for nationwide decriminalization.

Raphael Warnock and Jon Ossoff won their races, according to projections from Decision Desk HQ and Insider, giving Democrats a slim majority in the Senate and unified control of the government for the first time since 2011.

The Democratic-controlled House passed a bill in December to decriminalize and tax marijuana at the federal level, but Senate Republicans balked at the measure. The Democrats’ wins in Georgia give the party a narrow margin to pass more progressive cannabis legislation, though Republicans would still be able to filibuster such votes.

Investors piled into cannabis stocks on the newly bullish outlook. Tilray soared as much as 19.1%. Aurora Cannabis and Canopy Growth climbed 16.5% and 17.7% at intraday highs.

Read more: 10 top Wall Street experts unveil their stock-market forecasts for 2021 – and tell you where to put your money

Pot stocks climbed into the end of 2020 after the elections in November similarly boosted hopes for near-term decriminalization. Aurora Cannabis nearly doubled on November 6 as projections that Joe Biden would win lifted the sector. Democrats had previously pledged to push decriminalization legislation should Biden take office.

The legalization of marijuana for recreational use in Montana, New Jersey, South Dakota, and Arizona also drove cannabis stocks higher in November.

Nationwide decriminalization of cannabis would rapidly expand the addressable market for producers. Companies have so far been relegated to states where the drug is legal. Only 15 states have fully legalized marijuana, while another 16 have decriminalized the drug for nonmedical use.

Now read more markets coverage from Markets Insider and Business Insider:

Buy these 30 stocks that handily beat the market in 2020 and are poised for the best global returns in 2021, RBC says

Billionaire investor Bill Gross says the ‘Teslas of 2020’ may struggle in 2021 and reveals his top sector pick for the new year

‘The most important event of your investing lives’: Jeremy Grantham reiterates his warning that the stock market is in an epic bubble



Source link Weed Feed

Be the first to comment

Leave a Reply

Your email address will not be published.


*