Canopy Growth (CGC) Stock: Trump's CBD Endorsement Sparks Cannabis Rally

TLDR

Table of Contents

Cannabis stocks surged nearly 20% in premarket trading after President Trump endorsed CBD for senior healthcare on Truth Social
Trump’s post highlighted CBD’s potential to “revolutionize senior healthcare” and serve as an alternative to prescription drugs
Canopy Growth CEO Luc Mongeau made an unplanned personal stock purchase on September 23, boosting investor confidence
The AdvisorShares Pure U.S. Cannabis ETF jumped 25.2% and is tracking toward its biggest quarterly gain of around 70%
Trump previously hinted at marijuana reclassification, which could remove tax burdens and allow more cannabis companies to list on U.S. exchanges

Cannabis stocks experienced a dramatic rally Monday morning after President Donald Trump voiced support for cannabidiol use in senior healthcare. The unexpected endorsement sent shockwaves through the marijuana sector.

CBD — Hemp & Cannabis: Trump just posted this on Truth Social.
An educational video on the Endocannabinold System
Are we about to see some cannabis legislation? @CannConActual pic.twitter.com/C8J97N7QdI
— Joshua Reid | Redpills.tv (@realjoshuareid) September 28, 2025

Trump posted on Truth Social Sunday evening about CBD’s potential benefits. He claimed hemp-derived cannabidiol could “revolutionize senior healthcare” by reducing disease progression.

The president suggested CBD serves as an alternative to prescription drugs for older Americans. His comments came just weeks after indicating his administration might reclassify marijuana.

Canopy Growth shares jumped nearly 20% in premarket trading following Trump’s statement. Other major cannabis companies saw similar gains across the board.

Tilray Brands also surged nearly 20% before market open. Cronos Group added 9.5% while Aurora Cannabis gained 13.7% in early trading.

The AdvisorShares Pure U.S. Cannabis ETF rocketed 25.2% higher. The fund is now tracking toward its biggest quarterly gain on record of approximately 70%.

Insider Confidence Boosts Sentiment

Adding fuel to the rally was recent insider activity at Canopy Growth. CEO Luc Mongeau disclosed an unplanned personal stock purchase on September 23.

The insider buying sparked a two-day rally on September 24 and 25. Markets interpreted the CEO’s purchase as a vote of confidence in the company’s future.

Trading volumes spiked as investors responded to both political developments and management’s actions. The combination created perfect conditions for the stock’s weekly surge.

Regulatory Landscape Remains Complex

Trump previously eased hemp and CBD regulations during his first presidential term. The Agriculture Improvement Act loosened commercial restrictions on these substances.

However, marijuana remains classified as a Schedule I substance under federal law. This designation means it has high abuse potential with no accepted medical use.

Former President Biden had directed health officials to review marijuana’s classification status. The Department of Health and Human Services recommended moving it to Schedule III.

Schedule III drugs have moderate to low dependence potential. A reclassification would reduce regulatory burdens on cannabis companies operating legally.

“Trump already hinted that they were planning to reclassify it,” said Daniela Hathorn from Capital.com. “This doesn’t mean it’s legalizing the drug, but it does reduce some of the burden on the companies.”

Current tax laws under Section 280E deny standard business deductions to cannabis companies. Reclassification could eliminate this financial penalty entirely.

The tax relief would make it easier for cannabis firms to list on major U.S. stock exchanges. Institutional investors might show more interest without current regulatory barriers.

Cannabis stocks remain highly volatile due to changing political winds. Some companies like Canopy Growth have lost half their value this year.

Other cannabis stocks including Cronos and SNDL have gained more than 30% in 2025. The sector reflects ongoing uncertainty about federal legalization efforts.

Ben Laidler from Bradesco BBI noted the sector’s challenges. “MSOS is indicated up 20% at the open and benefiting from President Trump’s surprise Sunday support,” he said.

Nearly 40 states have legalized marijuana in some form. Federal reclassification would help bridge the gap between state and federal cannabis laws.

Trump’s weekend endorsement of CBD for senior healthcare sent cannabis stocks soaring, with Canopy Growth leading the charge alongside CEO insider buying activity.

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