Why is Arora cannabis stock up more than 0% today?


what happened

Shares of Canadian Pot Company, after jumping 32% earlier in the session Aurora cannabis (NYSE: ACB) By 10:50 a.m. EST will be 21%. This year the stock has been on a bumpy ride. Nevertheless, the stock is at a 65% low to date, Nov. 3. U.S. They have increased by about 80% since the election of.

So what

And the election is still moving in stocks today. The news that the Trump administration has officially cleared the way for the transition to the Biden presidency gives investors in cannabis companies more optimism for the industry.

Marijuana leaf and bud

Image Source: Getty Images.

Investors in pot stocks cheered the election for a variety of reasons. New Jersey, Arizona, Mississippi, Montana and South Dakota – five states had voting initiatives related to marijuana legalization, and all five passed.

Aurora’s share more than doubled in election week alone. Part of the emergence was also the belief that the bidon administration would be friendly to legalizing weeds on a federal basis. However, there is no one that investors can count on.

Now what

Losses Rora has spent most of this year restructuring its business and raising capital to cover its losses. Changes include cutting jobs, shutting down operations to consolidate production, and selling additional stock to raise money.

In its most recent report, Ora Rora said in the first quarter of fiscal year 2021 that its revenue is about $ 52 million. This was a decline over the previous year, which is not what investors in the growth industry want to see.

The potentially good news for investors is that the company aims to reach positive systematic earnings in the next quarter before interest, tax, devaluation and or redemption (EBITDA). That’s where investors should focus in the near term.