Cannabis Stocks Lose High Premarket After Surge Triggered By Trump’s Post
Major weed stocks rallied the previous day after President Donald Trump’s post, which highlighted the potential benefits of using cannabidiol in senior healthcare.
Stocks of cannabis sellers Tilray Brands Inc. and Canopy Growth Corp. fell 5% and 1.3%, respectively, in the early premarket session on Tuesday.
Weed stocks seem to be losing momentum from the previous day, when the sector rallied following President Donald Trump’s post highlighting the potential benefits of using cannabidiol in senior healthcare.
Hemp-derived cannabidiol (CBD) could “revolutionize senior healthcare” by slowing disease progression and serving as an alternative to prescription drugs, Trump said in a video post on Truth Social on Sunday.
Major companies Curaleaf Holdings, Trulieve Cannabis, and Glass House Brands rose 37% to 21% on Monday. They have over-the-counter (OTC) shares listed in the U.S., which do not trade pre- and after-market.
Tilray shares gained 60% hitting a 52-week high, while Canopy stock ended 17% higher.
On Stocktwits, the retail sentiment was ‘extremely bullish’ for Tilray, ‘bullish’ for Curaleaf, Canopy, and Trulieve, and ‘bearish’ for Glass House, as of early Tuesday.
A bullish user projected strong gains in the stocks should a formal announcement regarding the CBD be made.
Trump said last month that his administration was weighing a reclassification of marijuana. The potential move would classify marijuana as less dangerous under federal law and could lead to easing criminal penalties tied to its use.
Meanwhile, regulations around the commercial use of hemp and CBD were significantly eased through the Agriculture Improvement Act, enacted during Trump’s first term. As of now, marijuana remains listed as a Schedule I substance under the Controlled Substances Act, meaning it has a high potential for abuse and no current accepted medical use.
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