COVID-19 plunged the economy into a crisis like no other, testing the resilience of the retail industry. As a result, consumer shopping behavior and preferences have changed for good. This remote and contactless environment was difficult for cannabis retailers to adapt to. Village Farms International (NASDAQ:VFF), GrowGeneration (NASDAQ:GRWG) and even Aurora Cannabis (NYSE:ACB) delivered fantastic gains in November, with their shares more than doubling.
The Favorable Factors
Marijuana stocks overall enjoyed a boost from the U.S. elections that took place on November 3. Voters in Arizona, Montana, New Jersey, and South Dakota residents chose to legalize recreational marijuana whereas Mississippi and South Dakota approved the initiatives to legalize medical cannabis.
Winner #1 – Aurora
Aurora Cannabis ranked as the top pot stock of the month as its shares skyrocketed nearly 186%. Despite still losing market share in Canada’s recreational marijuana market, Aurora posted better-than-expected fiscal 2021 Q1 results at the beginning of November. While predicting revenue in the range between CA$60 million and CA$64 million, it generated net revenue of CA$67.8 million. The Canadian producer stated it’s on track to generate positive adjusted EBITDA in its upcoming quarter, Q2 of FY21.
Winner #2 – Village Farms International