Lawmakers are looking to make things a little greener in the United States, but cannabis stocks are not all taking the bait. Today, the House of Representatives voted to pass the Marijuana Opportunity Reinvestment and Expungement (MORE) Act. As a result, Canopy Growth (NASDAQ:CGC), Tilray (NASDAQ:TLRY) and Aurora Cannabis (NYSE:ACB) are all on the move. So what do you need to know about CGC, TLRY and ACB stock right now?
Investors should first understand the big picture for cannabis stocks. Leading up to today, the sector was starting to recover. This comes after a variety of challenges, including a supply-demand imbalance and pressures from the black market, brought many of the high-flying names down. Additionally, federal legalization in the U.S. has taken longer than many cannabis bulls initially hoped.
For many investors then, the House vote on the MORE Act was supposed to be a big step in the right direction. Not only would it decriminalize cannabis at the federal level, it could also set the stage for federal legalization. This also comes after Election Day, when several states including New Jersey legalized recreational use. Additionally, President-elect Joe Biden has promised to decriminalize cannabis at the federal level upon his inauguration.
So, after all the hype and a successful vote, why are cannabis stocks like ACB stock not soaring?
There are many potential answers to that question. One could simply be that with a Republican majority in the Senate, the MORE Act stands little chance of becoming law. Another answer is that with decriminalization the focus, many lawmakers may not have the intent of supporting legalization. For investors betting on that as a catalyst, this is disheartening.
Cannabis Stocks Are On the Move Friday
Where exactly do things stand? Well, with just a few minutes until the closing bell, ACB stock and TLRY stock are down in the red. CGC stock held onto positive territory a bit longer, but has ultimately dipped. That leaves names like Aphria (NASDAQ:APHA) alone in the green.
Keep a close eye on these cannabis stocks. The vote today did not provide a massive upside catalyst that many investors had hoped for, but the last several days brought a boost. This could just be a buy the rumor, sell the news situation. With the inauguration of Biden just a few weeks away, keep doing your research and paying attention to news.
Plus, states are already doing a lot of the legalization leg work. Following the vote in New Jersey, New York Gov. Andrew Cuomo has already promised to get marijuana legalization on the ballot next year.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.