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Cannabis Stocks Rise After Amazon Endorses Federal Legalization

Cannabis Stocks Rise After Amazon Endorses Federal Legalization

Things are looking a little greener over on Wall Street as marijuana stocks traded higher in June after eCommerce leviathan Amazon endorsed the federal legalization of marijuana. A myriad of cannabis stocks saw slight increases trading upwards to 11.9% for more active stocks. The sector jumped due to Amazon declaring at the top of the month that it will no longer screen prospective employees for cannabis.

With Amazon endorsing federal legalization, it shouldn’t be long before we see wholesale smoking accessories all over the app’s interface.

They are no longer screening for cannabis for any position not regulated by the Department of Transportation. Instead, the company plans to treat marijuana the same as alcohol use. Dave Clark, chief executive of Worldwide Consumer at Amazon, stated in a company blog post, “because we know that the issue is bigger than Amazon, our public policy team will be actively supporting The Marijuana Opportunity and Reinvestment and Expungement Act of 2021(MORE Act)- federal legislation that would legalize marijuana at the federal level, expunge criminal records and invest in impacted communities.” He continued by asking employers to join with them as well as policymakers to make a swift change.

Since his statement and Amazon’s declaration to stop drug testing for marijuana, stocks such as GrowGeneration Corp. gained 1.6%, Curaleaf Holdings Inc. tacked on 1.5%, with a slew of others stocks finding themselves rising up in percentages. One in particular, the Cannabis ETF, dropped 14.2% over the past 90 days but was still up 44.6% year to date. In comparison, the S&P 500 index SPX has advanced roughly 12.0% this year.

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