Hold onto your portfolios, folks—cannabis stocks just got a turbocharge from an unexpected source: Donald Trump.
The New York Post reported that early Monday, shares of major cannabis companies soared in premarket trading after Trump took to Truth Social on Sunday to praise the health benefits of cannabidiol (CBD) for seniors, while hinting at potential reclassification of marijuana.
Let’s rewind to Sunday, when Trump posted on his platform about CBD’s potential to “revolutionize senior healthcare” by slowing disease progression and offering an alternative to pricey prescription drugs.
Now, I’m no fan of the progressive agenda pushing every substance under the sun, but if CBD can help our seniors without the Big Pharma stranglehold, that’s worth a conversation.
Last month, Trump also floated the idea of reclassifying marijuana, a move that could lighten the legal burdens tied to its use—a rare moment where common sense might peek through the bureaucratic fog.
Monday morning, the markets reacted like they’d been handed a golden ticket: Canopy Growth and Tilray Brands spiked nearly 20% in premarket trading, while Cronos Group climbed 9.5% and Aurora Cannabis jumped 13.7%.
Even the big players felt the heat—the AdvisorShares Pure U.S. Cannabis ETF rocketed 25.2%, eyeing a quarterly gain of about 70%, and MSOS, the largest marijuana-focused ETF, was poised to open 20% higher.
Ben Laidler of Bradesco BBI noted that MSOS is “benefiting from President Trump’s surprise Sunday support” for CBD, adding that any backing “goes a long way for this beleaguered listed sector.”
Sure, Ben, a nod from Trump can move mountains—or at least markets—but let’s not forget this sector’s wild swings often dance to the tune of shifting political winds.
Now, reclassification isn’t full legalization, as Daniela Hathorn of Capital.com pointed out, emphasizing it would “reduce some of the burden on the companies.”
Daniela also hinted there’s “further room for these stocks to move higher” if reclassification gets confirmed, though I’d wager investors shouldn’t bet the farm just yet on Washington’s glacial pace.
Currently, marijuana sits as a Schedule I substance under federal law, branded as highly addictive with no medical value, despite nearly 40 states allowing it in some form—a glaring disconnect that reclassification could start to bridge.
If marijuana moves to Schedule III, as the Department of Health and Human Services recommended after a review ordered by the current administration, cannabis businesses could shed the crushing tax load from Section 280E, which blocks standard deductions.
That tax relief could open doors for more companies to list on U.S. exchanges and attract serious institutional money, while also narrowing the messy gap between state and federal laws—turns out, aligning policy with reality might just be a winning idea.
Back during Trump’s first term, the Agriculture Improvement Act eased restrictions on hemp and CBD, setting a precedent for pragmatic reform, so his latest comments aren’t exactly out of left field, even if they’ve got the left scratching their heads.
