What happened
Marijuana stocks closed Tuesday trading broadly higher — and the smaller they were, the higher they popped.
Tiny HEXO (NYSE:HEXO) closed the day up 7.9%, while Aurora Cannabis (NYSE:ACB) rose 6.8%, and industry bellwether Canopy Growth (NASDAQ:CGC) closed out the day with a 5.8% gain.
Image source: Getty Images.
So what
Why did marijuana stocks rise today? In the absence of obvious catalysts like market-moving analyst upgrades or price target increases, it’s not 100% clear what investors were responding to today.
They may, for example, have drawn encouragement from news of U.S. cannabis grower Verano Holdings‘ reverse-merger IPO on the Canadian Securities Exchange, and the $2.8 billion value investors attached to it. MJBizDaily reports that “capital is loosening” in the marijuana industry, meaning that it is getting easier to attract financing (and investors), now that the U.S. presidential election is definitely over and a marijuana-friendly administration is set to take office next month.
Or investors may have gotten excited by an early-morning item on MarketWatch detailing a trading outlook for 2021 from MKM Partners, in which the investment broker announced a series of…
