Why Tilray, Canopy Growth, and Aurora Cannabis Stocks Dropped Early Monday

Many Canadian cannabis stocks have been on the upswing over the past month as hope increased that the U.S. could be moving further along the path to legalizing marijuana. But this week started off with several of these names reversing course. Early Monday, the stocks of Tilray (NASDAQ: TLRY), Canopy Growth (NASDAQ: CGC), and Aurora Cannabis (NASDAQ: ACB) all dropped about 5%. As of 11:48 a.m. ET, these names have pared those losses, however, and are all down about 1%.

The U.S. House of Representatives passed the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act on April 1, 2022. Mostly along party lines, that House vote effectively agreed to legalize marijuana by removing it from the list of federally banned drugs under the Controlled Substances Act. That moves the issue to further consideration by the Senate. That progress toward legalization in the U.S., along with some positive earnings news, helped bolster shares of marijuana stocks in recent weeks.

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