After the much anticipated US presidential elections, Joe Biden has emerged victorious. This has led to a surge in stock market action for some companies. One such company is Aurora Cannabis. The ACB stock is one of the most in-demand stocks in the stock market right now.
What Is The Current ACB Stock?
Just yesterday, the ACB stock saw an increase of 28.6 percent. This rise is just one among many after Joe Biden won the November US presidential elections. The market sentiment believes that Joe Biden’s policies will help the cannabis industry. Even so, we should not forget that Aurora Cannabis has its fair share of issues.
For example, the company has acquired some expensive shares over the last couple of years, which has only hurt the company. Additionally, ACB stock hasn’t been successful in generating enough international buzz. It’s not a surprise that Aurora Cannabis has been facing downtime in the recent past. Even so, it tried to make do by cutting expenses and debt, which has somewhat stabilized its revenues. But, the matter is the same. Its stock market future growth is still questionable.
Miguel Martin, the CEO of Aurora Cannabis, has revealed new and positive strategies. Many hope that it will change the ACB stock’s current status. They plan on focusing on brands that are premium. Since the premium products have a higher market margin, it can generate higher revenues.
Recently some stock market analysts said that ACB stock will go down to $0. Gordon Johnson, an expert from GLJ Research, said that even though the ACB stock brought in $67.8 M in revenues, the firm still missed several bottom-lines. As per reports, Aurora Cannabis lost around $0.90 by share. It’s twice more than what stock market analysts have predicted. Its cash burn reported 50 percent more than the previous quarters.
And so, despite a Democratic administration entering the White House, the company’s future is looking a bit sketchy. Johnson is also of the opinion that ACB stock will fall to $0.
What Does A Biden Administration Mean For Aurora Cannabis?
While many are hoping that the Democratic party will legalize cannabis on the federal level, it’s still an issue fraught with opposition from the Republican Party.
As per StockNews, ACB stock is set to be bearish. Out of 19 stock market analysts, 14 issued a rating of “Hold”. Meanwhile, 4 issued a rating of “sell” and others issued a rating of “strong sell”. The company’s average target price stands at $8.01. The numbers indicate that the company has around a 13 percent chance to go down.
Overall, the general sentiment of Aurora Cannabis is that the ACB stock will remain neutral. You should also note that the company will experience stock market volatility in the near future.