South Dakota, North Dakota & Florida Say "No" To Marijuana Vote
Nebraska, Florida, North Dakota and South Dakota all voted on different laws regarding Marijuana. Nebraska was the only state that voted "Yes", while all the others voted "No".
- Florida: Voted "No" on an amendment that would allow adults aged 21 and over to buy, possess, and use marijuana.
- North Dakota: Voted "No" on a measure that would allow for the production, sale, possession and use of marijuana for adults over 21.
- Nebraska: Voted "Yes" on a measure that will allow for the use and possession of up to 5 ounces of marijuana by patients and their caregivers for medical purposes only. They also voted "Yes" for a measure that would create a government board to regulate medical cannabis for patients of Nebraska.
- South Dakota: Voted "No" for a measure that would allow for the use, distribution and possession of us to 2 ounces of marijuana by people 21 and over.
- Massachusetts: Voted "No" for a proposal that would allow adults 21 and over to use and possess psilocybin, psilocin, dimethyltryptamine, mescaline, and ibogaine. These psychedelic drugs would only be available for purchase at approved locations and for use while a licensed facilitator supervises.
Donald Trump's Stance On Marijuana
"As we legalize it throughout the country, it's awfully hard to have people all over the jails that are in jail right now for something that's legal," Trump said back in August. Donald Trump won the 2024 election, so his policies and views on marijuana will greatly affect how "Pot Stocks" fare these next 4 years. In the past he has been openly skeptical of marijuana, however in the months leading up to Election Day he has been vocally in support of marijuana legalization. "As a Floridian, I will be voting yes on Amendment 3 this November," Trump said when asked about the amendment for Florida mentioned in the section above on this blog.
Currently marijuana is a Schedule 1 drug, which means it has "no currently accepted medical use and a high potential for abuse". Other drugs that are labeled Schedule 1 are heroin, LSD, and ecstasy. Trump has expressed interest in changing it to a Schedule 3 drug, which is defined as having a "moderate to low potential for physical or psychological dependance." The Biden Administration has also tried to change marijuana from a Schedule 1 to Schedule 3 drug.
What This Means For "Pot Stocks"
With the recent state-level votes and a potential shift in federal policy on marijuana, the landscape for pot stocks could change significantly over the next few years. While certain states continue to oppose legalization measures, a national trend towards more lenient cannabis laws—especially under Trump’s "get stuff done" administration—could create a favorable environment for cannabis businesses. Here’s what investors should watch for:
- Increased Federal Support for Legalization
Donald Trump’s shift in support for marijuana legalization, combined with bipartisan pressure to reform marijuana policies, could lead to changes in federal laws or reclassification of cannabis as a Schedule 3 substance. If cannabis is reclassified, it would ease some restrictions on research, distribution, and banking access. This could allow pot companies to secure traditional financing and expand operations, positively impacting stock prices for companies with national and international growth ambitions. - Potential for Expansion in Conservative States
Although recent state votes, especially in North Dakota, South Dakota, and Florida, rejected adult recreational cannabis use, Trump’s supportive stance may influence conservative states. If cannabis gains national support, it could encourage states to consider revisiting legalization measures, opening new regional markets for pot stocks to expand into previously untapped territories. - Growth Opportunities in Medical Marijuana
Nebraska’s approval of medical marijuana demonstrates a growing openness to cannabis use for therapeutic purposes, especially in conservative states. Medical marijuana stocks may see steady growth, as these companies are likely to benefit from gradual legalization focused on medical applications. This could provide new investment opportunities in companies specializing in medical cannabis, particularly those developing products aimed at pain management, mental health, and chronic conditions. - Shift in Market Perception and Increased Investment
Reclassifying cannabis to Schedule 3 would likely improve the market’s perception of cannabis companies, helping the sector move away from its “high-risk” label. Institutional investors could begin entering the space more confidently, driving up valuations for established players. Additionally, investor interest in marijuana stocks would increase if Trump’s support leads to broader legalization efforts, creating more opportunities for mergers, acquisitions, and growth across the industry. - Enhanced Market Competition and Stock Volatility
With greater acceptance, more companies would enter the market, intensifying competition. Established companies like Canopy Growth, Tilray, and Curaleaf could face both increased market opportunities and competitive pressures from new entrants. As states and federal policies evolve, pot stocks may see fluctuations in value. Investors should expect short-term volatility but potential long-term growth as regulations catch up with market demand.
Trump’s evolving stance on marijuana, alongside a growing push for reclassification, hints at a more optimistic horizon for pot stocks. Investors should closely monitor state-level and federal developments, as each positive shift could significantly elevate the sector’s potential for expansion and profit. Here's a list of 10 popular "pot stocks" to watch:
- Canopy Growth Corporation (CGC) - Produces and sells a range of cannabis products, including recreational, medicinal, and wellness-focused products.
- Tilray, Inc. (TLRY) - Engages in cannabis research, cultivation, production, and distribution globally, with a focus on medical cannabis and CBD.
- Aurora Cannabis Inc. (ACB) - Operates internationally, providing medical and recreational cannabis and related products with a focus on innovation and health.
- Cronos Group Inc. (CRON) - Focuses on cannabis research, technology, and global sales, aiming to develop new cannabinoid products.
- Curaleaf Holdings, Inc. (CURLF) - Operates a large network of cannabis dispensaries, focused on wellness products and medicinal cannabis.
- Trulieve Cannabis Corp. (TCNNF) - Specializes in producing and distributing medical cannabis products in the U.S., with an emphasis on patient-centered care.
- Green Thumb Industries Inc. (GTBIF) - Runs retail stores and produces a variety of cannabis products for wellness and recreational use.
- Aphria Inc. (APHA) - Engages in the production and sale of medical-grade cannabis and related products, recently merging with Tilray.
- Harvest Health & Recreation Inc. (HRVSF) - Develops and sells a variety of cannabis products, with operations focused in the U.S.
- Innovative Industrial Properties (IIPR) - A real estate investment trust (REIT) specializing in cannabis-related properties, leasing to operators in the cannabis industry.
