Cramer Weighs In On Cannabis Sector Selloff
Cannabis stocks were mostly trading lower Wednesday and for good reason: a "blue wave" result from Tuesday's presidential election isn't going to transpire, CNBC's Jim Cramer said on "Squawk on the Street."
What Happened: Heading into Tuesday's election, a major Democratic victory across multiple branches of the government was considered to be a major catalyst for cannabis stocks.
"There was a belief that a blue wave would immediately mean that everybody can start smoking recreationally and drinking," Cramer said.
Why It's Important: Many people were excited over the prospect of a Democratic-controlled House and Senate working with a Biden White House to quickly transform the weed sector into a "legitimate industry" but "that is not happening," according to Cramer.
Republicans retained key Senate seats, dashing Democrats' hopes to flip the Senate.
Here is a summary of how some of the more notable cannabis stocks were trading early Wednesday afternoon.
Aurora Cannabis Inc (NYSE:ACB) down 9.7% at $4.44.
Aphria Inc (NASDAQ:APHA) down 0.6% at $4.96.
Canopy Growth Corp (NYSE:CGC) down 5.9% at $19.24.
Cronos Group Inc (NASDAQ:CRON) down 6.7% at $5.64.
Tilray Inc (NASDAQ:TLRY) down 7.4% at $6.12.
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