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Summary
- Canadian investors are eager to find out how the new leadership in the US will impact the stock markets.
- Canopy Growth stocks shot up nearly seven per cent on Monday, riding the pot rally on Monday.
- Trending stocks of Aphria climbed nearly six per cent, while Aurora Cannabis was up over 14 per cent on Monday.
Democrat Joe Biden is set to be sworn in as the 46th President of the United States on January 20, and Canadian investors are eager to find out how the new leadership south of the border will impact the stock markets. It is expected that as the Biden administration decriminalizes adult-use recreational cannabis at a federal level, business will be boosted for major Canadian pot firms like Canopy Growth (TSX:WEED), Aphria Inc (TSX:APHA) and Aurora Cannabis (TSX:ACB).
The S&P/TSX Cannabis index rallied by 8.42 per cent on Monday, January 4, the first working day of the year.
Rallying TSX Pot Stocks: Canopy Growth, Aphria & Aurora Cannabis
Stocks of Canopy Growth Corporation shot up nearly seven per cent on Monday, riding the pot rally on Monday. The shares rocketed almost 79 per cent in the last three months and over 51 per cent in the last six months.
Canopy stocks closed trading at C$ 33.41 on Monday.
The company received a substantial financial backing from New York-based liquor giant Constellation Brands (NYSE:STZ) last year, when it upped its stake in Canopy Growth to 38.6 per cent in May. The investment not only helped the Canadian pot firm navigate through the pandemic, but also positioned it better for business growth in the US.
Canopy Growth’s net revenue climbed 77 per cent year-over-year (YoY) to C$ 135.3 million in Q2 FY2021.
©Kalkine Group 2020
Aphria Inc reportedly reached new level of exposure in the US market following its merger with peer Tilray Inc (NASDAQ:TLRY) in December last year. Its acquisition of Atlanta-based brewery SweetWater Brewing Company in November 2020 has also helped it expand in the market down south.
The trending stocks of Aphria Inc (TSX:APHA) were up by nearly six per cent on Monday. The scrips, priced at C$ 9.31, rocketed by almost 93 per cent in the 10 months following the COVID-led March lows.
The company saw its net cannabis revenue surge by 103 per cent YoY to C$ 62.5 million in the first quarter of fiscal 2021.
Aurora Cannabis stocks (TSX:ACB), currently rallying on the TSX, shot up by over 14 per cent on Monday. The pot company suffered noticeably amid the pandemic, taking refuge in a host of cost control measures.
The stocks, priced at C$ 12.11, plummeted during the market meltdown in March, but ballooned nearly 99 per cent in the last three months.
Aurora Cannabis’ global medical business saw its net revenue jump over 40 per cent surge in the first quarter of fiscal 2021.
