Cannabis stocks move after President Biden signs marijuana research bill
Yahoo Finance Live looks at cannabis-tied shares following President Biden's signing of a marijuana research bill.
DAVE BRIGGS: My play is a trio of pot stocks-- Tilray, Canopy, and Cresco Labs. All trending tickers on Yahoo Finance today. All three stocks surging today on, relatively speaking, no real new news, though on Friday, President Biden did become the first American president to sign American specific reform marijuana legislation into law.
Now the bill was specifically focused on research, making it easier for scientific researchers to study the plant, but it also calls on the federal government to look into the potential therapeutic benefits of marijuana. Tilray, Canopy, and Cresco all moved higher, much higher, nearly 9% earlier today. And they've really come back down to Earth dramatically.
Now, they're all still in the plus. Cresco Labs, in particular, outperforming the other two. All three still having a nice day, but it is really hard to figure out what is going to be the true catalyst for these pot stocks, other than federal legalization, which, as best, is between 5 and 6 and 7 and 8 years away. All three of those stocks down between 35% and 50% this year.
SEANA SMITH: Yeah, I mean, I think it's just another case of investors looking for any sort of piece of good news that makes-- it's hard to make sense of the way that many of these stocks have traded. I think investors initially were very hopeful, going back a couple of years in terms of what we could potentially see on the federal level, but like you said, any movement there is likely years away. So I think that is why whenever we get a tidbit of good news or negative news, we see pretty dramatic fluctuations in the prices of these stocks.
JOSH SCHAFER: And then you also see the people that made a little bit of their money back, right, sort of saying--
SEANA SMITH: Trying to cash in.
JOSH SCHAFER: --10% in one day on a stock that hasn't done well, for some people, I think it's an easy way out. And that's why those stocks moved so much within the day.
DAVE BRIGGS: You're also seeing all three of those begin to diversify their product lineup outside of cannabis, and to liquor, and to beer, and to sports drinks because they realize it's a long-term story with cannabis.