Sundial Growers (SNDL) Stock Rockets On Biden Win

Sundial Growers SNDL Stock News

Sundial Growers Inc (NASDAQ: SNDL) is screaming for the top in the market this morning, following up on the tremendous growth seen in recent days. However, today’s declines are better stated in multiples than percentages as the excitement surrounding the stock continues to grow.

Interestingly, SNDL hasn’t issued any news via press release or SEC filing since October 29, 2020. So, it’s clear that there’s no news from the company driving today’s dramatic news. So, what’s the deal? Joe Biden won the presidential election in the United States, and that holds quite a bit of weight in the cannabis sector as a whole.

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Here’s Why SNDL Stock Is Rocketing

As mentioned above, the dramatic gains seen by Sundial Growers this morning has little to do with business-specific news. Insead, it all seems to be tied to the fact that Joe Biden has won the United States presidency. But why is the fact that Joe Biden will be the next president sending the stock screaming for the top?

Historically, the cannabis sector has been better served by democrats than republicans. In fact, in recent years, democrats have made big moves, pushing for and successfully legalizing and decriminalizing cannabis in various states across the country.

Recently, SNDL and other cannabis growers have been benefitting from the idea that the United States, the world’s largest financial market and world’s strongest economy, may legalize cannabis on a federal level.

Of course, if Trump would have won re-election, the republican party would continue to hold the White House and the legalization of adult-use cannabis from a federal standpoint would not have been likely. However, democrats have been for marijuana legalization as of late.

Considering the fact that our next president will be Joe Biden, there’s a much stronger chance that cannabis will be legalized federally than would have been the case if President Trump won re-election. As such, SNDL investors are excited.

However, SNDL stock isn’t the only one benefiting from today’s news. Some of the hottest names in cannabis this morning include:

  • CGC. Up nearly 4% in the premarket.
  • ACB. Up more than 20% in the premarket.
  • CRON. Up more than 8% in the premarket.

The Bottom Line

The fact of the matter is that the cannabis industry is evolving. This evolution has been led by regulatory changes in the United States, making cannabis legal or decriminalized in various states across the Union. At the same time, Canada has already legalized cannabis, setting a roadmap in place for successful legalization.

Cannabis market proponents are now waiting for larger changes to be made in the United States, and with a democrat winning the 2020 presidential election, there’s a far stronger chance of that happening over the next four years than there would have been should the election have been taken by a republican.

Should cannabis become legal on a federal level in the United States, Sundial Growers and other players in the cannabis industry have the potential to benefit greatly. As President Biden works to move forward with his goals, he, and his administration will need to find a way to pay for the aggressive social and health care changes he indends to make. Many suggest the incredible success that many states have seen in driving tax revenue through the legalization of cannabis will pave the way for a similar move by Biden on the national stage.

Nonetheless, a Biden presidency is far better for SNDL and its peers than a Trump presidency. As  aresult,SNDL stock is one to watch closely.

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