Why This Cannabis Stock Became More Popular Than Apple Among Millennials

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Cannabis

Cannabis has succeeded in becoming mainstream with retail investors across all demographics choosing to invest in marijuana to some extent or another.

However, it appears that one particular age group has become so impressed by one cannabis stock in particular that it’s now their top investment choice.

On the stock-trading app Robinhood, Aurora Cannabis (NYSE: ACB) became the most popular trade amongst millennial investors, edging out the tech giant Apple (NASDAQ: AAPL).



Out of the top 20 most-held stocks on the trading platform, Aurora Cannabis recently took the number one spot on the list, while Apple ended up falling to fourth. While the Robinhood app doesn’t attract many professional investors, it’s commission-free nature has made is especially popular among younger, beginner investors.

“Given the limited amount of pure play cannabis stocks available for U.S. investors, it comes [as] no surprise that millennials are concentrating in these positions,” said Matt Hawkins, managing principal at Cresco Capital Partners. “This generation has never seen ‘Reefer Madness,’ and does not view cannabis as a stigma. As this matures from a regulatory standpoint in the U.S. federally, the market is going to get even bigger and bigger. It’s just scratching the surface on how big this industry can be.”

While tech stocks like Apple have traditionally held top positions in terms of popularity, cannabis companies have quickly begun to dominate the platform. Most experts attribute this to the overall generational attitudes towards marijuana, with younger investors more willing to embrace the industry than their older, more conservative counterparts.

As for why Aurora Cannabis took the top spot as opposed to other rivals, Aurora has a number of advantages over its competitors. Despite not being the largest marijuana company in market cap, Aurora already has the largest production capacity of any of its rivals.

Wall Street analysts like Vivien Azer also are backing the stock, nominating Aurora as their top pick in the industry. Aurora is also in a unique position, having formed a strategic relationship with billionaire Nelson Peltz to help find acquisition and partnership opportunities (especially in the retail space).

Shares of Aurora Cannabis ended the day up around 0.8 percent, staying relatively the same on Monday’s trading session. Much of the cannabis sector as a whole has had a mixed performance today, as the industry collectively held it’s breath at the upcoming Canopy Growth (NYSE: CGC) and Acreage Holdings merger, which is getting voted on.

Aurora Cannabis Company profile

Aurora Cannabis Inc is a Canada-based company engaged in the production and distribution of medical cannabis.

The Company is vertically integrated and horizontally diversified across every key segment of the value chain from facility engineering and design to cannabis breeding and genetics research, cannabis, and hemp production, derivatives, home cultivation, wholesale and retail distribution.

The Company’s purpose-built facilities which integrate technologies across all processes are defined by automation and customization. The Company has a funded capacity of more than 625,000 kilograms per year as well as sales and operations in 24 countries worldwide. – Warrior Trading News

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