SNDL Inc., formerly known as Sundial Growers, saw its stock soar by 15.02% in Monday's trading session, significantly outpacing its pre-market expectations. This dramatic surge is part of a broader rally sweeping through the cannabis sector, triggered by an unexpected endorsement from former President Donald Trump.
The catalyst for this sector-wide movement was a video posted by Trump discussing the potential health benefits of cannabidiol (CBD). This surprise statement from a high-profile political figure has reignited investor interest in cannabis stocks, viewing it as a positive signal for the industry's future prospects and regulatory environment. As a result, several major players in the cannabis market experienced double-digit gains, with SNDL Inc. emerging as one of the significant beneficiaries.
The rally extends beyond SNDL, with other cannabis stocks also posting substantial gains. Canopy Growth surged nearly 25%, Tilray Brands rose 18%, and Aurora Cannabis climbed 10%. The Advisorshares Pure US Cannabis ETF, a fund tracking the U.S. cannabis industry, skyrocketed by 20%. This widespread uptick underscores the potential impact of changing political attitudes on the cannabis sector and highlights the volatile nature of these stocks in response to regulatory and political developments. Investors are advised to monitor the situation closely as the market digests this new information and its potential implications for the future of the cannabis industry.