Cannabis stocks jump on Canada, Germany moves

Cannabis-related stocks such as Tilray Brands (TLRY), Canopy Growth (CGC), Aurora Cannabis (ACB) jumped on news out of Canada and Germany.

In Canada, a government group brought together to study the impacts of the legalization legislation recommends the country reduce the excise taxes producers have to pay. Meanwhile, Germany has decriminalized cannabis for personal use.

Yahoo Finance's Josh Lipton and Julie Hyman discuss the moves in the video above.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Stephanie Mikulich.

Video transcript

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JOSH LIPTON: Time now for some of the day's trending tickers as we're nearing the end of the trading day. Let's take a look at the cannabis stocks. They are surging in today's trade. The news here was that a group commissioned-- I mean, actually a couple of different story lines, but let's start off with a group commissioned by the federal government of Canada, Julie, did recommend reviewing taxes charged to pot producers it sounds like.

So the group basically said, listen, the excise tax is a problem. And it was put in place when the average price of cannabis was a lot higher than it is today. And so they said in this statement, we see an opportunity to update the tax policy to reflect the current reality, the group said. So what happens next, it sounds like per reports there's going to be a recommendation made to the federal government there. It doesn't sound like we have an exact timeline yet, but that was one piece of news that clearly investors like today.

JULIE HYMAN: Yeah, and the other piece of news is that Germany is now decriminalizing cannabis. As of April 1, possession and home cultivation will be decriminalized for adults. They'll be able to own and to possess limited amounts here.

I mean the context for all of this, there's a couple of things to mention. Cannabis stocks have been decimated, so there's that, right? They've been very out of favor. But they've been rallying not just today, but all week.

A couple of things have gone on last Friday, Vice President Kamala Harris hosted an event on reform of marijuana regulation. And so that kind of gave a bit of a catalyst to the group. And all this week, we have seen this rally.

JOSH LIPTON: Yeah, you're also seeing investors pick out, which names looks like, kind of have exposure to the German market, by the way. So reading through reports, it looks like Canopy Growth is one, Tilray is another.