There are plenty of reasons to like Aurora Cannabis (TSX:ACB) (NYSE:ACB). Aurora stock has climbed over 45% since the beginning of the year. The fact that two billionaires have decided to invest in ACB stock is another reason investor interest has piqued.
According to Yahoo Finance, Citadel Advisors and Renaissance Investors have just jumped on board the Aurora train.
Aurora Stock
Recent SEC filings show that Citadel Advisors and Renaissance Technologies, investment firms run by billionaires Ken Griffin and James Simon respectively, bought shares of Aurora Cannabis in the first quarter of 2019.
Currently, Aurora stock is selling for $10.47 USD, down 3% on the day. It's plausible the market has yet to react to this news because if two of the world's wealthiest people are investing in Aurora, it says a lot about the company's potential.
Why Aurora?
There are good reasons for choosing Aurora stock. Though the second largest cannabis company by market cap, Aurora Cannabis is the leader in terms of production capacity. While capacity isn't everything, it is a strong consideration when investing in cannabis because demand is rife, and supply has battled with supply chain issues. Those that can deliver the most are going to be the ones to capture the majority market share.
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But the international medical cannabis market is really why Aurora entices. Because, in time, this market will be bigger than the entire Canadian market and with activity spanning 24 countries, Aurora Cannabis is poised to dominate. With so much presence across the globe, Aurora claims the highest international revenue right now in the international medical cannabis market.
Only last week, Aurora signed up with the UFC. The pair signed a multi-year, multi-million dollar global research deal whereby they will aim to establish a link between CBD products and an athlete’s wellness and recovery.
While this may not be the exact reason the two billionaires invested, it is a potentially very lucrative move for the company. The company plans on taking full advantage of the UFC's prolific athletes to which it will now gain access. UFC fighters are some of the most talked about athletes in the world, and Aurora’s partnership will allow it to take advantage of their reach and influence.
What do you think? Would you be encouraged to invest in Aurora stock?
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