Why Tilray, Canopy Growth, and Aurora Cannabis Stocks Just Dropped
Stock markets opened higher on Monday, and as of noon ET, the Dow Jones Industrial Average is up a solid 1% -- but don't try to tell marijuana investors. They're going through their own private bear-cub market today, with shares of Canopy Growth (NASDAQ: CGC) falling 2.7%, Tilray Brands (NASDAQ: TLRY) down 3.4%, and Aurora Cannabis (NASDAQ: ACB) leading the pack lower with a 4.1% decline.
What's got marijuana investors so spooked? There's not a lot new happening on the regulatory front today -- no really big changes in the prospects for federal marijuana legalization. What there is though, is a bit of headline risk that may affect the extent to which marijuana gets legalized in the United States, once legalization finally happens.
There's a movement in Congress -- which is largely in favor of legalizing marijuana... eventually -- to carve out an exception for marijuana edibles. Citing "an explosion of marijuana use among children," the 156-member House Republican Study Committee (which makes up about 35% of total votes in Congress) is advocating that, even if marijuana, in general, is allowed to be legalized, marijuana edibles "in the form of candy or beverages" should remain illegal due to the risk that such things as cannabis-infused gummy candies will be consumed by small children.
Source Fool.com
