Aurora Cannabis rockets 94% as projected Biden victory further boosts pot stocks

Alberta Cannabis Inc/Handout via REUTERS

  • Aurora Cannabis launched as much as 94% higher on Friday after former Vice President Joe Biden was projected to win the 2020 US presidential election.
  • Democrats have previously said they aim to decriminalize marijuana at the federal level should a Biden administration materialize.
  • Other Canadian pot producers including Tilray, Aphria, and Canopy Growth gained on the news.
  • Watch Aurora Cannabis trade live here.

Aurora Cannabis spiked as much as 94% on Friday as former Vice President Joe Biden’s projected election victory lifted pot stocks.

The Democratic candidate’s vote tallies in Georgia and Pennsylvania surpassed President Donald Trump’s Friday morning, leading Decision Desk HQ to call the race in Biden’s favor soon after. Democrats previously pledged to decriminalize marijuana at the federal level should Biden win the White House. Such a move provides a massive shot-in-the-arm for marijuana producers previously relegated to states where the drug is legal.

Friday’s surge follows a potent, albeit smaller, rally the session prior. Aurora leaped as much as 40% on Thursday as Biden slowly emerged as the frontrunner in the presidential election. Back-to-back climbs place Aurora shares at their highest since July and mark their largest two-day rally since May.

Read more: Raymond James’ investment chief details why Joe Biden and Mitch McConnell are the perfect pair to drive markets upwards — and lists 4 sectors he thinks are primed for gains no matter who’s in power

The industry also received a boost on Tuesday when voters in New Jersey, Montana, South Dakota, and Arizona all passed laws to legalize marijuana for recreational use. 

Other Canadian pot producers gained on the news. Tilray soared as much as 55%, while Canopy Growth jumped roughly 18% at intraday highs. Aphria leaped as much as 12%. MJ, an ETF that tracks more than 30 producers and retailers, climbed as much as 14%. 

Aurora traded at $10.99 per share as of 12:30 p.m. Friday, down roughly 51% year-to-date. 

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