Cannabis Stocks: Why CGC and ACB Stock Are Climbing Today

Investors are feeling a little green on Monday, sending cannabis stocks like Aurora Cannabis (NYSE:ACB) and Canopy Growth (NASDAQ:CGC) higher. And while the industry has been heating up in recent weeks, there does not appear to be any company news today. So what exactly has CGC and ACB stock on the move?

multiple jars of different sizes carrying marijuana

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Well, investors can thank the upcoming Senate runoff races in Georgia. Tomorrow, voters will determine which party has control of the Senate. Perhaps most importantly, those voters could also flip control of the Senate to the Democrats. With President-elect Joe Biden gearing up for his inauguration and Democrat control in the House of Representatives, this would usher in that so-called blue wave many talked about prior to Election Day. For investors rooting on such an outcome, Jon Ossoff and Raphael Warnock must emerge victorious.

But where exactly do cannabis stocks come in? And why are investors chasing CGC and ACB stock up ahead of the election? The answer to the second question likely comes from the betting markets. Importantly, betting markets and all other sorts of political predictions are far from a sure thing. But as social media users began to share that overseas betting markets favor a Democratic victory, excitement began to grow for pot stocks. Whether or not voters actually deliver a blue wave remains to be seen.

Cannabis Stocks and the Georgia Race

Investors should remember that beyond the talk of betting markets, Democratic victories in 2020 have made the case for cannabis stocks brighter. To start, Biden has promised to decriminalize marijuana at the federal level after his inauguration. Several states also voted in favor of legalization and decriminalization on Election Day. Others like New York will likely soon follow. Plus, after the House passed the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, many investors believe legalization in the U.S. is closer than ever. A Democrat-controlled Senate would make that case even stronger.

So what should you do with Canopy Growth and ACB stock here? Well, the bull thesis on cannabis stocks was already gaining ground. If you couple in political support, industry consolidation and Covid-19 recovery, things look good even without a Democratic victory in Georgia. Keep an eye on the news and do your own research. And as the U.S. does soften its stance against cannabis, here are six marijuana stocks you should be watching.

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 

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