Cannabis stocks have slumped for the second straight week as chances

As for stocks with names such as Curaleaf Holdings, GrowGeneration and Aurora Cannabis, the buzz appears to have subsided.As part of a sell-off in markets that have devastated technology and other growth areas over the past few weeks, investors have also dropped cannabis producers and distributors, which performed much better over the course of the month. Outbreak The AdvisorShares Pure Cannabis ETF, comprised of cannabis-based growers and drug developers, fell 8.5% following last week's 9.4% drop, the Amplify Seymour Cannabis ETF, down 20% over the past two weeks, the biggest drop. Since March last year Most of the top cannabis companies are based in Canada, where the plant is legal for recreational consumption.As of 2018, the US has nearly 10 times as many people as Canada and distributors are waiting for opportunities to expand. Under anxiously
After a while, things will look good.

Weed's shares rose after Joe Biden was elected president in แจ็คพอตแตกง่าย November and then again in January after Democrats won a majority in the Senate with two victories in Georgia runoff elections Investors cheering on the results, believing Democrats will take action to legalize marijuana at the federal level following a November vote to allow recreational weed in Arizona, Montana, New Jersey and South Dakota They joined 11 other states that have already enacted the pot laws.Senate Democrats have promised to enact widespread legislation that will end federal prohibition on cannabis and end the war on drugs.Ending the federal marijuana ban is necessary to correct the guilt of this failed war and end decades of damage inflicted on colored communities across the country," said Chief Minister Chuck Schumer. Much of the Senate of New York was written, along with Zen Cory Booker of New Jersey. And Ron Wyden of Oregon in a statement on Feb. 1.

Where are the Republicans?

But working across the aisle isn't easy, and Democrats need some Republicans to pass meaningful legislation. If the Covid-19 relief bill is any indication, the chances of bipartisan are dire. It's not the only Republican Senate to have signed a $ 1.9 trillion package.Matt Bottomley, an analyst covering the cannabis sector at Canaccord Genuity, addressed the political challenges in a report last month on Canopy Growth, which owns cannabis retailers and brands that produce cannabis-based products. He downgraded to sell after the company's quarterly results, largely because of "significant value additions" since October.The sector continues to see the value of appreciation as a function of the positive macro headlines coming out of the United States. (President Biden, a democratic Senate control,

committed to pushing for US cannabis reform at the federal level), ”Bottomley wrote. It is believed that CGC value additions towards the end of the year are likely not to experience a consistent fundamental upside at this time.Canopy Growth has dropped 19% over the past two weeks.One of the biggest decliners this week is Aphria, which agreed in December to merge with Tilray in what would be the largest cannabis company by revenue.Aphria, which produces medicinal and recreational cannabis, dropped 13. % After a 11% drop in the last week It was the worst performance in two weeks for stocks since plummeting four weeks between February and March last year.Aphria CEO Irwin Simon told CNBC last month that he expects marijuana to become legal in the United States within the next few years.

But it said it could happen sooner in places like Germany and Portugal.There are things that are not known about what will happen in the United States. But we have a balance sheet, we have knowledge, we have brands, we have technology that can make a major impact. When the legalization takes place, ”Simon said Feb. 24 in“ Closing Bell, ”“ I say it's completely legal for the next couple of years.Shares of Tilray, a cultivation research and distribution company, were down 12 percent this week following last week's 17 percent drop.The slump affected the entire industry.Curaleaf, a provider of health and wellness products, dropped 12% in two weeks, while GrowGeneration The online store for the device is growing 31 percent and Aurora Cannabis, the cannabinoid carrier, is down more than 20 percent.