Canopy Growth Stock Is Ripping Higher: What's Going On?

Canopy Growth Corp CGC shares are trading higher Tuesday, adding to gains of more than 100% over the last week. Here’s a look at what’s going on.

What To Know: Canopy Growth shares appear to be rising on continued momentum following the legalization of adult-use cannabis in Germany last week.

Germany passed a law on Friday that will allow individuals to possess up to 25 grams of cannabis for personal consumption, store up to 50 grams in their homes and maintain up to three plants for home cultivation. The new law is set to go into effect on April 1.

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In a press release responding to the news, Canopy Growth called the legalization a “monumental shift” in the legal treatment and cultural acceptance of cannabis. The company also noted that the legalization has created an opportunity for Canopy to expand its commercial presence in the country through its German-based vaporizer brand Storz & Bickel, as well as through the company’s medical cannabis product offerings.

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For Canopy Medical, the classification of cannabis as a non-narcotic is expected to result in more patients engaging with their physicians about medical cannabis options.

“The re-classification of cannabis as a non-narcotic is a game-changer for patients and physicians who will be empowered to better explore cannabis as a viable treatment option for an expanded range of condition,” said Tara Rozalowsky, chief growth officer and president, International, Canopy Growth.

“We are thrilled to be able to continue serving the medical community by delivering high-quality cannabis products that meet patient needs and we look forward to increasing our already leading presence in the German medical cannabis market.”

Despite more than doubling in recent sessions, Canopy growth shares are still down more than 98% over the last five years. Canopy Growth stock is trending across various social platforms Tuesday as retail traders discuss a potential turnaround in the stock.

Canopy Growth’s average session volume is about 5.4 million, according to Benzinga Pro. Tuesday’s trading volume has already exceeded 31 million at publication time.

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CGC Price Action: Canopy Growth shares were up 26% at $7.81 at the time of publication, according to Benzinga Pro.

Photo: Nicky from Pixabay.