Both Aurora Cannabis (NYSE:ACB) and Hexo Corp. (NASDAQOTH:HYYDF), formerly known as Hydropothecary, have given investors a roller-coaster ride so far in 2018. Hexo shareholders have probably enjoyed the ride more. The marijuana stock is up close to 45% after doubling earlier in the year, while Aurora Cannabis is down more than 15% year to date.
Reefer madness has gripped Wall Street.
Investors are craving marijuana stocks as Canada prepares to legalize cannabis in October 2018, leading to giant gains for Canada-based companies listed on U.S. exchanges. Some experts are concerned that the ending will be a buzzkill.
Exactly one month from today, millions of Canadians will be able to buy weed legally, and industry leaders across North America are racing to grab a slice of this massive new market. To this end, many major alcohol firms, including Canadian brewery Molson-Coors and American distribution giant Constellation Brands, have already made massive investments in Canada's pot industry, with an eye on bringing a variety of cannabis-infused alcoholic beverages to market.