The launch of cannabis in New York has brought good news to some investors
In the stock market, stock prices vary from day to day. Sometimes they make sense, and many times they don’t, especially in the short term. For those who want to know the quick answer to what moves stock prices is very simple, it is a law of supply and demand. In the case of the cannabis industry, there are a lot of factors that can influence these price movements. For example, both SNDL and Curaleaf have just seen their shares soar higher recently. There are a few explanations as to why.
There’s no doubt that marijuana investors love it when a giant new market opens up for business. Yesterday, several different marijuana stocks rose sharply in price. This was an early reaction to the launch of a major new market. New York has already opened the first business focused on recreational marijuana sales.
Just at 4:20 PM local time, a dispensary called Housing Works Cannabis in Manhattan became the first business yesterday to provide this service. The historic milestone marks the launch of that all-important segment of the marijuana retail business in the Empire State.
Both Curaleaf (+5%) and Green Thumb (+12%) have dispensaries in New York, making the ripple effect more than obvious. Investors who have put their trust in these firms are clearly pleased that the pair will begin the new year selling recreational items in the huge, populous state.
Following the news, across the border, Canadian companies Aurora Cannabis advanced almost 7% and SNDL closed up 3%. Although they do not have a direct benefit from the opening of this market, it is an irresistible and juicy target once the US government decides to implement a federal marijuana reform.