Wall Street: Aurora Cannabis (ACB) a top pot stock to watch in 2019
With its newly expanding marketplace of recent years, the marijuana industry is capturing increased attention on Wall Street particularly among Millennial investors. With an industry in its infancy, analysts are eagerly reviewing the daily charts and financials of numerous pot stocks hoping to be the first to identify a potential break-out star. Many are now eyeing Canada’s Aurora Cannabis Inc. as a top pot stock to watch for 2019.
When Amazon first went public in 1997, a single share sold for mere $1.97. Today it’s worth almost $2000, which means the price increased by over 100,0000%. Even if the stock had been purchased five years ago for about $300 per share, amateur investors still would have made almost seven times their initial investment.
Wall Street geeks are desperate to identify which cannabis company is going to become the new Amazon of the marijuana-based stock exchange. And many have their eyes on Aurora Cannabis (ACB), which is currently selling for a paltry $9 per share at the time of this writing.
Why Aurora Cannabis?
None of this information is financial advice, and all investors are advised to fully understand all risks associated with any kind of investment. But with that in mind, the financial sector seems to be largely bullish on pot stocks long-term.
Less than a year ago, the Chronos Group (CRON) was the weed-based darling of Wall Street. After the company began showing signs of poor earnings in late 2019, many investors began turning their collective attention to ACB. It was also around this time that the ACB cannabis company announced a pending partnership with the Coca-Cola Company with the goal of producing a line of CBD-enhanced beverages. Cannabis Coke anyone?
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In 2019 alone, ACB is outperforming CRON by almost 2:1. Aurora Cannabis is seeing an approximate 80% gain while Cronos is showing a near 45% increase. In the world of financial investments, both of these new marijuana stocks are performing quite well.
The trading exchange Robinhood is also announcing this week that more than 420,000 of its mobile app investors now own at least one share of Aurora Cannabis stock. Coincidentally (or perhaps not), the term “420” is the old-school slang term for weed. The investors website Markets Insider reports the following.
“The reason for Aurora's popularity is not clear, although it does have the lowest nominal stock price of the major cannabis companies, potentially increasing its appeal. The cannabis market is rapidly evolving, with reports that the US Congress may consider federal legalization.”
Currently, there are 33 states (and Washington DC) which allow legalized marijuana for medical use, and 9 of those also allow legal weed for recreational consumption, too. Meanwhile, five additional states currently have some sort of pro-cannabis legalization in the works: Connecticut, Illinois, New Jersey, New Mexico, and New York.
Legalized marijuana is also gaining bipartisan support in the nation’s capital. Trump has said publicly that he’s all for it, and GOP Senate Majority Leader Mitch McConnell was instrumental in the recent passage of a bill to legalize hemp farming nationwide. Not to be undone, the Democrats have always been huge pot supporters, too. With little political roadblocks in sight and a constantly expanding and previously untapped marketplace chock full of anxiously awaiting, weed-loving customers, marijuana stocks like Aurora Cannabis may be the ones to watch in 2019.
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