Why Canopy Growth, Aurora Cannabis, and Hexo Shares Are On Fire Today
Marijuana stocks were on fire Wednesday, with shares of Hexo (NYSE: HEXO) end the day up 4.4%, Canopy growth (NASDAQ: CGC) up 5.4%, and Aurora Cannabis (NASDAQ: ACB) beating them both with a gain of 7.8%. And one word explains why all of these stocks are doing so well:
Amazon (NASDAQ: AMZN).
Yesterday, in a surprise announcement, Amazon declared its support for the proposed legalization of marijuana in the United States.
Buried deep in an article on the company’s “AboutAmazon” blog, which primarily dealt with efficiency initiatives in the workplace, Amazon Worldwide Consumer CEO Dave Clark said that “the The company’s public policy team would actively support the Marijuana Opportunity Reinvestment and Expungement Act of 2021 (MORE Act), “with the aim of legalizing marijuana at the federal level and also clearing records of criminal marijuana offenses .
In addition, Reuters reports that Amazon has indicated that it “will no longer screen its candidates for employment for the use of marijuana for positions not regulated by the Department of Transportation.”
Those two developments – Amazon’s leniency on employee marijuana use and a push to officially legalize marijuana nationwide – would likely have been enough on their own to give inventory a boost. of marijuana today. But in addition to all of the above, Clark further expressed hope that “other employers will join us” in this effort, “and that policymakers will move quickly to pass this law.”
It looks like Amazon is trying to start a movement in the corporate world. But why?
Well, here’s a theory: In an aside that investors in marijuana stocks and in Amazon stocks might want to take into account, Reuters observed that Amazon “does not allow sales of marijuana on its platform. form”.
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