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, New goal: After GameStop, AMC & Co .: Reddit community drives cannabis stocks | message, Forex-News, Forex-News
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New goal: After GameStop, AMC & Co .: Reddit community drives cannabis stocks | message

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, New goal: After GameStop, AMC & Co .: Reddit community drives cannabis stocks | message, Forex-News, Forex-News


, New goal: After GameStop, AMC & Co .: Reddit community drives cannabis stocks | message, Forex-News, Forex-News

Positive WallStreetBets contribution to Aphria and Tilray
Reddit community takes cannabis stocks
Other companies in the industry benefit

After the great hype about cannabis stocks a few years ago, many companies that earn their money selling cannabis or cannabinoid-containing products suffered heavy losses and the share prices of many companies have come back down to earth from their record highs. Due to the patchwork of regulations prevailing in many places, the POT companies were often unable to implement the quantities as hoped. As a result, many companies have not been able to convert their high investments in strong growth into corresponding sales and profits.

Support political developments

However, for the past few months, cannabis companies seem to be back on the rise. According to Reuters, the current rally in cannabis stocks was supported by “a wave of legalization in the major US states and the promise of the Democratic Party to decriminalize the plant at the federal level.” Changes that some party members have promised Joe Biden could help give cannabis companies access to more traditional banking methods and open the sector to new institutional investors.

Cannabis stocks are booming: invest in the cannabis stock index now! (Display)

WallStreetBets sees potential in Aphria and Tilray

In a post in the Reddit forum WallStreetBets, which had just caused a sensation with violent fluctuations at GameStop, AMC & Co., it was announced last week that the shares of the cannabis producers Aphria and Tilray had more headroom.

As recently as December, the two companies had announced the acquisition of Tilray by Aphria. Since the deal was announced in mid-December, Aphria shares have risen 136 percent from $ 8.12 to $ 19.23. Tilray stock rose 244 percent from $ 7.87 to $ 27.10 over the same period (as of February 18, 2020 closing price).

According to the WallStreetBets contribution, however, the Aphria stocks were even up to a new 52-week high at 32.25 US dollars and the Tilray stocks climbed to 67 US dollars – investors had taken advantage of it, which was also reflected reflected in trading volume.

The environment also benefits

But not only Aphria and Tilray were able to gain – the shares of other cannabis producers were also in demand and were able to rise to record levels. While marijuana stocks often trade in tandem due to sentiment, Barrons said many of those stocks performed with varying degrees of success. After the WallStreetBets contribution last week, Canopy Growth stocks were able to gain 15 percent at times and hit a new 52-week high at $ 56.49. Aurora Cannabis went up more than 20 percent last week to $ 18.98 – but failed to break its 52-week high from early 2020 at $ 21.42. Sundial Growers stock shot up more than 80 percent at times, hitting a new high at $ 3.95.

You might also be interested in: Forex-news.com.net guide The best cannabis stocks to buy

As with GameStop, the stocks of cannabis companies also fell again shortly after the strong upswing – investors quickly took their profits back with them. The ETFMG Alternative Harvest ETF (MJ), which is involved in marijuana companies and whose top 10 holdings include Tilray, Aphria, Canopy Growth and Aurora Cannabis, fell 24 percent last Thursday, Barrons reported, and gained is almost at the level of the beginning of the week.

However, the recovery of cannabis stocks may continue at a more moderate pace in the future even without a push from the Reddit community. It remains to be seen how the political and regulatory environment will develop.

Finanzen.net editorial team

More news about GameStop Corp.

Image Sources: Yellowj / Shutterstock.com, Opra / Shutterstock.com



, New goal: After GameStop, AMC & Co .: Reddit community drives cannabis stocks | message, Forex-News, Forex-News

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, New goal: After GameStop, AMC & Co .: Reddit community drives cannabis stocks | message, Forex-News, Forex-News

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