Tom Franck | CNBC
CNBC’s Jim Cramer on Wednesday outlined how election initiatives in several states across the country could affect the stock market.
Cannabis, sports betting, and ridesharing businesses saw a boom on election day after voters approved new proposals that would expand markets or introduce business-friendly regulations.Bad money“Host said.
“This has been a great night for these three market-moving industries,” he said.
Voters in Arizona, New Jersey, South Dakota and Montana have all decided to end the marijuana ban to make recreational use acceptable in their territories. South Dakota, which asked two separate cannabis questions, partnered with Mississippi to legalize marijuana for medical purposes.
Recreational use is legal in 15 states and Washington, DC, although it is still federally banned. More than half of the country has opened the drug market to marijuana.
However, the cannabis cohort crashed into the market on Wednesday as investors saw a blue wave that could have had more impact on the weeds at the federal level was unlikely to happen, Cramer said. The MJ The ETF, which tracks global companies in the legal weed business, was down 3%.
“If Canadian growers don’t benefit, and US growers don’t act here, then how are you going to play all these new states that have legalized weed? Simple: They go with the picks and shovel games. Think of them as the plausible denial of marijuana- Shares, “he said.
Maryland, Louisiana, and South Dakota were the youngest states to allow gambling within their borders. Since the Supreme Court authorized states to legalize gambling within their borders, 25 states have passed laws to facilitate the emerging segment of gambling.
Voters in Nebraska also approved amendments to the state constitution to legalize and tax casinos. It’s likely that it could make way for sports betting in the future, Cramer said.
“They are the ones with the best chance of profiting from these new states,” said the hosts.
California voters supported hail-fighting companies About and Lyft Exemption for tech companies from complying with a labor law that would have forced drivers to be classified as workers rather than independent contractors.
Proposal 22 protects the two of them from giving drivers benefits that would be given to employees, but it compromises by giving drivers new benefits such as minimum earnings and car insurance. Uber and Lyft spent over $ 200 million on the election to classify their drivers as independent contractors
Gig companies in Silicon Valley raised millions of dollars to campaign and it paid off. Lyft and Uber stocks shot up in double digits on Wednesday.
“I think the overwhelming success of Proposition 22 is a warning shot against state and local governments trying to crack down on ridesharing,” Cramer said. “If politicians want to come for Uber and Lyft, this referendum says this may not be the smartest move politically.”