Reports detail that prices for various marijuana stocks are quickly rising, seemingly in large part due to the midterm election results. Marijuana-related initiatives were on the ballot in four different states and increasing support for the industry is having a significant impact on the value of the companies involved.
Reuters explains that a handful of cannabis companies saw big increases in their stock prices on Wednesday. One, Tilray Inc., had a 30.6 percent jump in their shares, and a handful of other companies experienced increases that ranged from 7.1 to 20.1 percent. In addition to the quick uptick in share values, Tilray’s shares, in particular, were moving at more than four times their usual pace.
As the Inquisitr detailed earlier, marijuana-related votes won in three of the four states where they were on the ballot in these midterm elections. In addition, there is already talk that New York may be one of the next states to tackle the idea of legalized marijuana after the midterms paved the way to getting more Democratic candidates into office there.
Marijuana currently remains illegal federally. However, California Congressman Dana Rohrabacher recently talked about how the Trump administration is reportedly committed to coming up with a reform plan now that the midterms are over.
America is reaching a "tipping point" in marijuana legalization that could eventually spur a national change, one pot investor says. https://t.co/ogSCvM3PkM
— CNBC (@CNBC) November 7, 2018
Rohrabacher has been supportive of marijuana legalization. However, Rohrabacher just lost his bid for reelection. It looks like the ball may already be rolling on this front, though, and that others may step in to continue this conversation on the federal level.
Apparently, getting past the midterms may not be the only factor that has led to skyrocketing stock values for these marijuana companies. Attorney General Jeff Sessions is leaving his position, and he’s been quite vocal in opposing federal marijuana legalization. It seems that the marijuana stock price increases happening on Wednesday and the departure announcement from Sessions are perceived to be directly related.
Investopedia notes that according to recent polling, 66 percent of Americans are now in favor of legalizing marijuana. That number has been increasing each year, as conservative states like Oklahoma, Missouri, and Utah have passed bills related to medical marijuana use this year, offering a sign of where things could be headed on the national level.
Investor’s Business Daily notes that after this week’s elections, 33 states will have some type of legalized marijuana use. The Michigan legalization is expected to bring in huge profits and experts note that control of the House shifting to the Democrats may well provide an opportunity to pass reform bills that will help grow the market.
It is too soon to know how quickly marijuana will become available recreationally in more states throughout the country or whether it might soon even be decriminalized federally. However, support for these ideas is steadily rising and the increasing value of the companies involved would appear to support that premise.