Shares of several cannabis stocks, including Aurora Cannabis Inc ACB, Canopy Growth Corp CGC, Cronos Group Inc CRON, Sundial Growers Inc SNDL and Tilray Inc TLRY, are trading lower Friday afternoon. Shares of cannabis companies at large are trading lower, selling off from Thursday's rally which came following reports suggesting Senate Democrats are planning to introduce a marijuana decriminalization bill next week.
Per a Thursday morning Bloomberg report, Senate Democrats plan to introduce a bill to decriminalize marijuana at the federal level next week, a person familiar with the matter said.
Bloomberg says the legislation still faces long odds in the evenly divided chamber.
Why it Matters
Shares of several cannabis stocks last saw marked strength in March and were trading higher following reports indicating The House Rules Committee had meeting to prep federal marijuana legalization bill for floor action.
The sector has otherwise been trading lower in sympathy with the broader market in 2022. Investors continue to weigh the economic impact of Federal Reserve policy tightening as well as the impact of higher rates on growth stock valuations.
Disclosure: The author is long TLRY calls.
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