US Election 2024: Cannabis Stocks Feel Trump Effect, But Retail's Hopes Stay High

Several cannabis stocks dived on Wednesday after Democrat Vice President Kamala Harris lost to Republican candidate Donald Trump, who will return for a second term in the White House to become the 47th U.S. president.

Harris was seen as having a favorable take on the recreational use of Cannabis, which many Republican states have yet to legalize.

On Wednesday, the state of Florida voted against one such move that would have legalized marijuana for recreational use to adults 21 years of age and older from medical marijuana treatment centers and other state-licensed entities, Reuters reported.

Florida was seen as a  “very attractive market,” Reuters reported citing an estimate from cannabis analytics company Headset indicating $4.9 billion to $6.1 billion in adult-use sales during the first year of implementation.

Cannabis-focused stocks such as Tilray Brands ($TLRY) and Trulieve ($TCNNF) were down 14% and 39% respectively as of 1:55 pm ET.  

Trulieve had also provided funding worth $145 million as of October towards the Florida campaign, Associated Press reported.

Other stocks that saw declines include US-listed SNDL Inc. ($SNDL) and Cronos Group ($CRON) were down 14% and 9%, respectively as of 2:20 pm ET.  While shares of Canada-based Aurora Cannabis Inc. ($ACB) were down more than 17% as of 2:45 pm ET.

To be sure, Trump’s choice of who replaces the current attorney general and the possibility of a more moderate senate majority leader may still bring favor to the industry.

Twenty four American states have legalized cannabis for recreational use, with 39 states where Cannabis use is allowed for medical purposes.

Many Stocktwits users were hopeful of a bounce back.

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For updates and corrections, email newsroom@stocktwits.com.

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