In a recent turn of events, shares of Tilray (NASDAQ: TLRY) saw an 11% increase on Monday after U.S. Vice President Kamala Harris expressed support for fully legalizing marijuana. This news was met with enthusiasm by investors, as it could potentially benefit companies in the cannabis-lifestyle and beverages sector.
During a closed-door meeting at the White House, Harris reportedly stated that “we need to legalize marijuana,” and urged the U.S. Drug Enforcement Administration (DEA) to reschedule marijuana as quickly as possible. Currently, marijuana is classified as a Schedule I drug under the Controlled Substances Act of 1970, alongside substances like heroin.
This statement marks a significant shift in Harris’s stance on marijuana legalization since joining Joe Biden’s presidential ticket in 2020. With marijuana already legal in many states for medical and recreational use, the prospect of federal legalization could have a major impact on the industry.
Tilray, a company that generates a significant portion of its revenue from cannabis products, has been making strategic moves to expand its reach both domestically and internationally. With the U.S. being the largest cannabis market globally, the potential for federal legalization could mean big things for Tilray and other companies in the industry.
While Tilray’s stock saw a boost in response to this news, investors should always conduct thorough research before making any investment decisions. The Motley Fool Stock Advisor team, for example, recently identified the 10 best stocks for investors to buy now – with Tilray not making the cut. Their recommendations have a strong track record of success, outperforming the S&P 500 consistently since 2002.
In conclusion, the potential for marijuana legalization in the U.S. is creating excitement in the market, and investors should stay informed and cautious when navigating this rapidly evolving industry.
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