Several cannabis stocks slid lower on Wednesday. Shares of Aphria (NASDAQ: APHA) were down 6.4% as of 3:19 p.m. Tilray (NASDAQ: TLRY) stock was falling 6.7%. Charlotte’s Web Holdings (OTC: CWBHF) shares were tumbling 6.4%. Aurora Cannabis (NYSE: ACB) stock was slipping 5.7%. Other top pot stocks were posting smaller declines.
When so many stocks in the same industry sink, there’s usually a common denominator. In this case, one potential culprit is Vice President Kamala Harris’ comments in an interview with the San Francisco Chronicle published yesterday. The vice president stated that the Biden administration has been too busy with other priorities to address marijuana decriminalization or other major cannabis reforms. This relegation of cannabis-related efforts to the back burner could be increasing investors’ doubts that any action will be forthcoming in the near future.
However, marijuana stocks really began to slide on Wednesday after Natalie Fertig with Politico tweeted that the Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau has been meeting with various cannabis advocacy groups to discuss cannabis regulations. Investors could be more worried about the possibility that cannabis reform measures won’t meet expectations than they are that no reform will happen at all.