The last week, the stock of companies that are engaged in the production of cannabis, jumped up, what caused such growth? OGI stock has benefited by an increase of 5.5% throughout the last week. Today it stands at $3.24, showing daily swelling from $2.65.Amazon (AMZN) said it backs federal legislation in the U.S. to legalize marijuana. Based on several indications, the movement of these stocks can be attributed to retail traders. Sharp jumps in the average trading volume over 30 days, in addition to a lack of news about a company, are a strong signal. Alabama, a historically conservative state, just become the 37th state to allow medicinal marijuana. In addition to the legalization rush, Amazon has said that, depending on job requirements, it will suspend testing some employees for marijuana.
Nevertheless, cannabis companies’ revenues are getting down almost by 30% in comparison to the last year’s statistics. Expected, that the stock market’s prominence on social media will dwindle. The underlying company will be all that is left. This has to improve for these enterprises to have long-term success, whether it is via improving prices in their home market or expanding into new ones.