A WallStreetBets Post Sparks Interest in the Growing Market
Currently, a majority of the US population supports the decriminalization of marijuana and related products. With changes in laws, several states have started to be more accepting of legal cannabis businesses. The recent shift in administration has raised expectations for a continued positive trend. Along with the legalization and consumption of cannabis, there are also new investment opportunities arising.
Today, US cannabis stocks saw an increase as shares of companies like Tilray Inc and Aphria Inc surged by 21% and 10% respectively. This sudden rise is attributed to a post on the WallStreetBets subreddit, the same platform that drove the recent surge in GameStop stock. A post on the subreddit suggested that the shares of these companies have room for growth, leading many retail investors on the forum to invest. The post garnered over 10,000 likes within twelve hours.
Following the GameStop incident, both casual and professional investors have been closely monitoring the activities on the WallStreetBets subreddit as it seems to signal potential hot stocks and consumer sentiment.
Tilray ($TLRY), ETFMG Alternative Harvest ETF ($MJ), and other cannabis companies are experiencing a surge in earnings and support from Reddit. https://t.co/6GOseOc8rV
— TheStreet (@TheStreet) February 10, 2021
“I don’t believe the retail investor story disappears quickly,” commented Mirabaud sales trader Mark Taylor to Reuters. “I’m mainly observing the price movements and trying to interpret it all.”
Several officials in President Joe Biden’s administration have vowed to make changes and progress in the regulation of the cannabis industry. However, some argue that since companies like Tilray and Aphria are Canadian, US policies might not impact them significantly, potentially making their growth in the US stock market unsustainable.
