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Cannabis Stocks Surge as U.S. President Considers Easing Marijuana Restrictions

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 12/13/2025, 8:16 am ET 12/13/2025, 8:16 am ET | 5 min 5 min read
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SNDL Inc. stocks have been trading up by 25.97 percent, driven by positive market sentiment and recent developments.

Consumer Staples industry expert:

Analyst sentiment – positive

SNDL’s financial performance shows significant challenges in its profitability metrics, with negative EBIT and pretax profit margins of -4.1% and -33.8%, respectively. Despite a strong gross margin of 47.5%, the company struggles to translate this into net profitability. The lack of a positive P/E ratio further highlights its inability to generate profits. However, SNDL maintains a healthy financial strength with a low debt-to-equity ratio of 0.14 and a robust current ratio of 5, indicating sufficient liquidity. The decrease in long-term debt issuance and a positive cash flow from operations portrays management’s cautious fiscal approach.

Technically, SNDL shows signs of price volatility with a recent surge from a low of 1.64 to a close of 2.23 in a week. The stock seems to follow a bullish trend, indicated by a higher high and higher close. Traders should observe the 2.00 level as a critical support zone while targeting the resistance at 2.30. The increase in volume aligned with the price uptick signifies growing investor interest, which strengthens the bullish outlook. For short-term strategies, consider buying on dips with a stop-loss at 1.80.

Recent developments surrounding SNDL’s share repurchase program and potential US policy changes on marijuana provide positive momentum for the stock. The renewal of its share buyback, amounting to C$100M, indicates firm confidence in its undervaluation. Moreover, eased US marijuana restrictions, which have already sparked a significant surge in cannabis stocks, position SNDL favorably within the sector. Given the upward trajectory in company sentiment, while trading above pivotal support levels, SNDL aligns well against benchmarks, providing optimism for a continued bullish trend going forward.

Candlestick Chart

Weekly Update Dec 08 – Dec 12, 2025: On Saturday, December 13, 2025 SNDL Inc. stock [NASDAQ: SNDL] is trending up by 25.97%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

SNDL’s recent financial performance presents a complex picture. The company’s profitability ratios signal challenges, with a negative EBIT margin of -4.1% and a pretax profit margin of -33.8%. However, the gross margin remains relatively robust at 47.5%, suggesting some efficiency in cost management. The revenue of $920.4M, though indicative of substantial operations, is overshadowed by significant expenses, leading to a reported net loss of $13.3M in the latest quarter.

From the recent stock chart data, SNDL’s shares showed a considerable upward trajectory, especially notable on December 12, 2025, trading high at $2.28 before closing at $2.2297. This rally aligns well with the positive sentiments following policy change news, underscoring the immediate market reactions. Yet, the company’s low price-to-book ratio of 0.58 and a current ratio of 5 indicate a strong liquidity position, which can be a buffer against short-term volatility.

More Breaking News

Financial reports reveal key areas of potential growth, such as a revenue increase from past years and a commitment to managing operational costs despite setbacks in net income. The $32.36M change in cash, driven significantly by operating activities, highlights a focus on cash flow management that could support strategic initiatives like the share repurchase program authorized up to C$100M.

Conclusion

As trader confidence inches upward with the speculated U.S. policy changes on marijuana, companies like SNDL stand poised to capitalize on these developments. The significant stock price jump hints at strong market sentiment favoring regulatory relaxation’s possibilities. While SNDL faces existing profitability challenges, the firm’s strategic positioning and liquidity strength may enable positive navigation through this evolving market scenario.

If these policy shifts indeed materialize, SNDL and other cannabis-centric firms could witness a transformative phase, potentially redefining growth trajectories and industry dynamics. However, as millionaire penny stock trader and teacher Tim Sykes says, “There is always another play around the corner; don’t chase just because you feel FOMO.” For now, the market watches closely, hopeful for formal confirmation that might propel these stocks to new heights.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”