Weed stocks were gaining ground early Wednesday after Michigan became the 10th US state to legalize marijuana for recreational use. Voters rejected a similar measure in North Dakota, while the legalization for medical use passed in both Utah and Missouri.
Following the results, cannabis producers were rising across the board. Here's a look at the scoreboard at 9:32 a.m. ET on Wednesday:
Cannabis stocks have captured the attention of both Main Street and Wall Street this year. In August, Constellation Brands, the maker of Corona beer and Svedka vodka, announced a $4 billion investment in Canopy Growth. That led to a "green rush" into the sector, with market values of the biggest names more than doubling.
Last month, Canada became the second country to legalize marijuana for recreational use, putting a top in shares. But the future remains bright for the sector.
"We believe today, the US is where Canada was 24 months ago — with cannabis legalization a shining beacon in its not-too distant future," George Archos, CEO of Verano, said.
"Investors believed cannabis stocks were over-valued ahead of legalization, and then the stocks rocketed upward as legalization neared and took effect. Today, some analysts are questioning the valuation of US cannabis stocks. But with legalizations looming – perhaps within the next two years -- and more States creating medical and recreational programs, we believe cannabis stocks are on a firm upward trajectory, although there may be a few dips along the way."
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