Cannabis stocks are the talk of Wall Street today as a number of these green producers produced healthy gains. It seems Sundial’s (NASDAQ:SNDL) earnings beat and new, promising comments from the Tilray (NASDAQ:TLRY) chief executive have investors hopeful for the burgeoning industry.
So, what is going on with marijuana stocks today?
Well, first up is Sundial. The Canada-based cannabis and alcohol producer released its second quarter earnings results this morning. The company managed to surpass revenue expectations, announcing surprisingly strong year-over-year growth. The company generated 223.7 million CAD in sales in Q2. This represents a whopping 2,344% jump from the same quarter last year, in which the company reported close to 9.2 million CAD in revenue.
It wasn’t a uniformly positive earnings report, however. Sundial reported a loss of 74 million CAD for the quarter, wider year over year from 52.3 million CAD.
With that said, investors are clearly pleased with Sundial’s results. SNDL stock gained nearly 6% today. Sundial is Canada’s largest private liquor and cannabis retailer, meaning a win for the company typically has a ripple effect across related companies. This seems to be what’s behind the upswing marijuana growers are enjoying today.
Indeed, TLRY gained 6.5%, while Canopy Growth (NADSAQ:CGC) experienced a massive 15.7% jump.
Cannabis Stocks Rise Following Tilray CEO Optimism
SNDL isn’t the only bullish factor lifting cannabis today. Tilray CEO Irwin Simon recently told Yahoo Finance that the U.S. is a potential $100 billion opportunity for cannabis.
The U.S. is a $100 billion opportunity in cannabis. If you look at cannabis today in the U.S., 93% of Americans want medical cannabis legalized and about 63%, 65% want adult use. Today, it’s legal in about 33 states, plus D.C. So it’s out there that… a majority of people want cannabis legally.
Another Canadian cannabis manufacturer, Tilray is one of the biggest growers of marijuana across the globe. The U.S. has long been considered the ultimate destination for the cannabis industry due to its high volume of consumption and potential for robust market regulation. As such, it comes with little surprise that Simon’s optimistic comments on the future of cannabis in the U.S. have some investors frothing at the mouth.
While the legal status of marijuana continues to be a source of conflict domestically, an increasing number of states are legalizing both medicinal and recreational cannabis access for adults. This comes with inherent promise for cannabis companies like Tilray, Sundial, and Canopy Growth, which have long expressed interest into expanding into U.S. markets.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.