Marijuana Stocks Surge on Election Results Which Added 4 States for Recreational Use, Possible New York Addition Next Year

November 6, 2020 10:40 AM EST

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Marijuana stocks are sharply higher for the second straight session as election results from Tuesday added four more states that have legalized the recreational use of marijuana. In addition, New York Governor Andrew Cuomo said Thursday that the conditions are ripe to legalize marijuana in his state next year.

In an interview with WAMC radio, Cuomo said, "I think this year (2021) it is ripe because the state is going to be desperate for funding, even with Biden, even with a stimulus. We’re still going to need funding, and it’s also the right policy. So I think we get there this year."

Election results from Tuesday showed that New Jersey, Arizona, Montana, and South Dakota, voted to legalize recreational marijuana.

Cowen analyst Vivien Azer said the results meaningfully expands the total addressable market (TAM) “TAM expands by more than $3 bn [to $34 bn], given adult use progress in AZ and NJ, coupled with positive outcomes in MT and SD," Azer said.

Day traders are flocking again to cannabis stocks, according to Dan Pipitone, co-founder of TradeZero America. "We are seeing a great deal of interest in cannabis stocks, both long and short," Pipitone said. "Canopy Growth Corporation (NYSE: CGC) is leading the way."

Related Stocks:

  • Canopy Growth (NYSE: CGC) +10%
  • Tilray, Inc. (NASDAQ: TLRY) +23.4%
  • Cronos Group Inc. (NASDAQ: CRON) +11.3%
  • Aurora Cannabis Inc. (NYSE: ACB) +66.4%
  • Aphria Inc. (NASDAQ: APHA) +8.3%
  • HEXO Corp. (NYSE: HEXO) +21%
  • Curaleaf (OTC: CURLF) +6%
  • Harvest Health (OTC: HRVSF) +1.2%
  • Green Thumb Industries Inc. (OTC: GTBIF) +2.4%

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