Trump Administration Prepares to Reclassify Marijuana
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Should l Buy ACB?
Source: seekingalpha
- Market Rally: Cannabis stocks surged sharply on Wednesday following reports that the Trump administration is preparing to reclassify marijuana, with Tilray Brands (TLRY) rising about 14%, Canopy Growth (CGC) up roughly 21%, and Curaleaf (CURLF) climbing around 26%, indicating strong market optimism regarding policy changes.
- Industry Leaders' Performance: Curaleaf's robust performance highlights its leadership position in the cannabis sector, and with the potential implementation of reclassification, it is expected to attract more investor attention, further driving up the company's stock price.
- Positive ETF Response: Cannabis-related ETFs, such as AdvisorShares Pure US Cannabis ETF (MSOS) and Amplify Alternative Harvest ETF (MJ), also experienced gains, reflecting increased market confidence in the future development of the cannabis industry.
- Quantitative Rating Analysis: Despite the overall rise in cannabis stocks, many companies maintain a “Hold” rating, including Tilray Brands (TLRY) and Aurora Cannabis (ACB), suggesting that the market remains cautious about the long-term outlook for the industry.
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Analyst Views on ACB
Wall Street analysts forecast ACB stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 3.410
Low
6.28
Averages
6.77
High
7.39
Current: 3.410
Low
6.28
Averages
6.77
High
7.39
About ACB
Aurora Cannabis Inc. is a Canada-based medical cannabis company. The Company’s principal business lines are focused on the production, distribution and sale of cannabis and cannabis-derivative products in Canada and internationally. The Company’s segments include Cannabis and Plant Propagation. The Company's adult-use brand portfolio includes Drift, San Rafael '71, Daily Special, Tasty's, Being and Greybeard. Its medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co, as well as international brands, Pedanios, IndiMed and CraftPlant. The Company also holds a 50.1% controlling interest in Bevo Farms Ltd., a supplier of propagated vegetables and ornamental plants in North America. Its subsidiaries include Aurora Cannabis Enterprises Inc., Aurora Deutschland GmbH, Whistler Medical Marijuana Corporation, and Indica Industries Pty Ltd., among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Micro Float Advantage: With a public float of only 534,420 shares following multiple reverse stock splits, AKAN's stock skyrocketed 1,700% in April, outperforming peers like Trulieve and Canopy Growth, highlighting the sensitivity of micro-float stocks to buying pressure during market rebounds.
- Strategic Shift: AKAN is increasingly focusing on the Canadian and European markets while building a telecommunications infrastructure through its First Towers & Fiber unit in Mexico, which is expected to generate $2 million in contracted cash flow over the next decade, providing a hedge against the volatility typical in pure cannabis companies.
- Market Sentiment High: Retail sentiment for AKAN on Stocktwits is extremely bullish, with message volumes surging 231,800% over the past month, indicating strong investor interest in the stock, despite potential short-term corrections, as traders remain optimistic about its future performance.
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- Industry-Leading Mileage: Inceptio has recorded over 700 million kilometers of autonomous driving, significantly surpassing competitors like Pony.ai, which has logged 4.2 million kilometers, establishing a strong foundation for future technology validation and market penetration.
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- Market Reaction: In the latest pre-market trading, AKAN shares surged 32%, marking its fourth-largest single-day gain this year, reflecting strong market confidence in its future growth potential.
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- Retail Trader Sentiment: Over the past 30 days, message volume for AKAN on Stocktwits has skyrocketed by over 106,200%, indicating extremely bullish sentiment among retail investors, with many predicting the stock could reach triple digits.
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- Market Reaction: On Thursday, cannabis stocks retreated after early gains as investors reassessed the limited impact of the U.S. government's move to reclassify FDA-approved and state-licensed marijuana, with Cronos Group (CRON), Aurora Cannabis (ACB), Canopy Growth (CGC), Tilray Brands (TLRY), and OrganiGram Holdings (OGI) seeing declines between 7% and 14%.
- Policy Details: Acting Attorney General Todd Blanche announced on social media that FDA-approved marijuana and state-licensed marijuana would be rescheduled from Schedule I to Schedule III, although this measure applies specifically to certain FDA-approved products rather than the broader market, resulting in uneven benefits across the sector.
- Industry Response: FundCanna CEO Adam Stettner noted that medical operators could benefit from clearer federal alignment and potential tax relief, while companies focused on adult-use markets continue to face existing restrictions, including limited access to capital and regulatory fragmentation.
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See More
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- Tilray's Expansion Plans: Tilray is exploring participation in a federal pilot program run by the Center for Medicare and Medicaid Innovation, aiming to supply hemp-derived medical cannabis through cancer clinics, which is intended to improve services for underserved patients.
- Market Reaction Volatility: Although Tilray's stock surged by 19% following the policy announcement, it ultimately closed down 12%, reflecting investor concerns over the limited scope of the order, which also negatively impacted other cannabis companies' stock prices.
- Optimistic Industry Outlook: Roth Capital Partners views the partial rescheduling order as “extremely favorable,” potentially alleviating Section 280E tax restrictions, improving import and export prospects, and paving the way for eventual adult-use rescheduling, thus enhancing overall sector investability.
See More
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- Market Reaction: Following the announcement, shares of Tilray (TLRY), Canopy Growth (CGC), Aurora Cannabis (ACB), and IGC Pharma (IGC) fell between 2-5% in morning trading despite previous gains, indicating a cautious market response to the policy change.
- Investor Sentiment: Retail sentiment on Stocktwits for TLRY, CGC, ACB, and IGC turned ‘extremely bullish’ with message volumes surging, reflecting optimistic expectations for the cannabis industry's revival, with some users claiming Tilray will become the “king of the U.S. cannabis market.”
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See More
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- Stock Surge: AKAN's stock has surged 300% this week, marking its best weekly performance ever, reflecting improved investor sentiment across cannabis stocks, particularly after the U.S. Justice Department moved state-regulated marijuana to Schedule III, significantly boosting optimism in the sector.
- Micro Float Advantage: With a public float of only 534,420 shares following multiple reverse stock splits, AKAN's stock skyrocketed 1,700% in April, outperforming peers like Trulieve and Canopy Growth, highlighting the sensitivity of micro-float stocks to buying pressure during market rebounds.
- Strategic Shift: AKAN is increasingly focusing on the Canadian and European markets while building a telecommunications infrastructure through its First Towers & Fiber unit in Mexico, which is expected to generate $2 million in contracted cash flow over the next decade, providing a hedge against the volatility typical in pure cannabis companies.
- Market Sentiment High: Retail sentiment for AKAN on Stocktwits is extremely bullish, with message volumes surging 231,800% over the past month, indicating strong investor interest in the stock, despite potential short-term corrections, as traders remain optimistic about its future performance.
See More
Autonomous Trucks Face Significant Challenges Despite AI Advances
- Limited Technological Impact: Despite ongoing advancements in AI, Inceptio Technology's CEO Julian Ma states that these improvements have minimal effect on the timeline for commercializing autonomous trucks, with full commercialization expected by mid-2028, highlighting the complexities of industry development.
- Data Accumulation Goals: Inceptio aims to collect 5 billion kilometers of driving data by the end of 2028 to support fully autonomous heavy-duty trucks, emphasizing the critical role of data in autonomous driving and the necessity for partnerships and regulatory approval to achieve this goal.
- Industry-Leading Mileage: Inceptio has recorded over 700 million kilometers of autonomous driving, significantly surpassing competitors like Pony.ai, which has logged 4.2 million kilometers, establishing a strong foundation for future technology validation and market penetration.
- Increasing Regulatory Challenges: Chinese authorities have suspended new autonomous driving licenses due to safety incidents, reflecting the regulatory risks faced by the rapidly expanding industry and underscoring the close relationship between technology and policy.
See More
AKAN Stock Surges Following Marijuana Reclassification
- Stock Performance: Since the marijuana reclassification, AKAN stock has significantly outperformed peers Tilray, Canopy Growth, and Aurora Cannabis, which have seen declines of 8%, 4%, and 8% respectively, while AKAN surged 32%.
- Market Reaction: In the latest pre-market trading, AKAN shares surged 32%, marking its fourth-largest single-day gain this year, reflecting strong market confidence in its future growth potential.
- Policy Impact: The U.S. Department of Justice's reclassification of medical marijuana as a less dangerous drug is expected to ease regulatory burdens on licensed operators, provide tax relief, and support research, driving AKAN's strong performance.
- Retail Trader Sentiment: Over the past 30 days, message volume for AKAN on Stocktwits has skyrocketed by over 106,200%, indicating extremely bullish sentiment among retail investors, with many predicting the stock could reach triple digits.
See More
U.S. Marijuana Reclassification Impact Limited as Stocks Retreat
- Market Reaction: On Thursday, cannabis stocks retreated after early gains as investors reassessed the limited impact of the U.S. government's move to reclassify FDA-approved and state-licensed marijuana, with Cronos Group (CRON), Aurora Cannabis (ACB), Canopy Growth (CGC), Tilray Brands (TLRY), and OrganiGram Holdings (OGI) seeing declines between 7% and 14%.
- Policy Details: Acting Attorney General Todd Blanche announced on social media that FDA-approved marijuana and state-licensed marijuana would be rescheduled from Schedule I to Schedule III, although this measure applies specifically to certain FDA-approved products rather than the broader market, resulting in uneven benefits across the sector.
- Industry Response: FundCanna CEO Adam Stettner noted that medical operators could benefit from clearer federal alignment and potential tax relief, while companies focused on adult-use markets continue to face existing restrictions, including limited access to capital and regulatory fragmentation.
- Market Expectations: Todd Harrison, founding partner at CB1 Capital Management, indicated that while the rescheduling of medical cannabis takes effect immediately, the hearing for adult use is set for June, failing to meet investors' higher expectations and leading to a more pessimistic market sentiment.
See More
U.S. Places Medical Cannabis Products in Schedule III
- Policy Impact: The U.S. government's decision to place FDA-approved marijuana products and state-licensed medical cannabis programs into Schedule III is expected to facilitate clinical research and broaden treatment access, thereby enhancing the legitimacy of medical cannabis in modern healthcare.
- Tilray's Expansion Plans: Tilray is exploring participation in a federal pilot program run by the Center for Medicare and Medicaid Innovation, aiming to supply hemp-derived medical cannabis through cancer clinics, which is intended to improve services for underserved patients.
- Market Reaction Volatility: Although Tilray's stock surged by 19% following the policy announcement, it ultimately closed down 12%, reflecting investor concerns over the limited scope of the order, which also negatively impacted other cannabis companies' stock prices.
- Optimistic Industry Outlook: Roth Capital Partners views the partial rescheduling order as “extremely favorable,” potentially alleviating Section 280E tax restrictions, improving import and export prospects, and paving the way for eventual adult-use rescheduling, thus enhancing overall sector investability.
See More
DOJ Updates Marijuana Classification Policy
- Policy Change Context: The U.S. Department of Justice has formally proposed reclassifying state-licensed medical marijuana from Schedule I to Schedule III, which, while not legalizing marijuana, reduces regulatory hurdles and offers tax relief for licensed operators, expected to enhance medical research and expand access to treatments.
- Market Reaction: Following the announcement, shares of Tilray (TLRY), Canopy Growth (CGC), Aurora Cannabis (ACB), and IGC Pharma (IGC) fell between 2-5% in morning trading despite previous gains, indicating a cautious market response to the policy change.
- Investor Sentiment: Retail sentiment on Stocktwits for TLRY, CGC, ACB, and IGC turned ‘extremely bullish’ with message volumes surging, reflecting optimistic expectations for the cannabis industry's revival, with some users claiming Tilray will become the “king of the U.S. cannabis market.”
- Akanda Corp. Outperformance: In contrast to major cannabis stocks, Akanda Corp. (AKAN) saw a 6% increase, extending a remarkable 215% surge from the previous session, with investors debating whether this explosive rally is driven by optimism over cannabis reclassification or the stock's low float.
See More
