Why Aurora Cannabis is on fire today
Shares of the Canadian pot giant Aurora Cannabis (PBR 4.32%) jumped 17% in premarket trading on Wednesday morning. The marijuana cultivator’s stock is heading north in response to the early results of two senatorial elections held yesterday in Georgia.
As ballots are still being counted in the Peach State, some major news outlets are already calling the race for Democratic challenger Reverend Raphael Warnock against Republican Sen. Kelly Loeffler. Democrat Jon Ossoff also holds a slight lead over Republican Senator David Perdue with 98% of the votes counted, according to multiple sources.. The Democrats therefore appear poised to tie the Senate at 50 seats each.
Over the past two years, three major laws on marijuana reform were passed by the U.S. House of Representatives. Each time, however, those bills got nowhere quickly in the Republican-controlled Senate, thanks in large part to opposition from current Majority Leader Mitch McConnell. However, one or more of these marijuana reform bills may now have a chance of actually passing in light of this potential power shift. Aurora may therefore be able to significantly expand its footprint in the United States over the next few years.
Is it casserole broth a purchase in the wake of this possible political reversal in the United States? Unfortunately, the answer is a resounding no. There is no way to say for sure how far any initial marijuana reform in the United States will go. Additionally, the United States already sports several well-established multi-state carriers. Put simply, Aurora is unlikely to derive any material benefit from this likely policy shift in 2021.