The Reddit Trading community is on a roll, from inflating GameStop stocks to increasing Cannabis companies' visibility on the market thanks to the Reddit group WallStreetBets. This surge in cannabis stock rises probably due to the expectation of the legalization of marijuana federally under the Biden government.
Cannabis companies are on cloud9 with the enormous increase in stocks recently. Tilray Inc, a Canadian Cannabis and Pharmaceutical company, is leading the game, with its stocks increasing more than 50x, with its stock's year-to-date gain being more than 670%. Then comes Aphria Inc, with a 10% increase and a 280% gain. Aurora Cannabis and Canopy Growth also saw a rise of 20% and 6%, respectively.
Reddit users are in heated discussions over the stock rise, and forums are filled with regular updates. A post by popular Reddit user u/jcal1290 stated that the user had earned an average of $500,000 from Tilray and Aphria investments since January. They claimed that both the stock shares had even more room to rise, urging Reddit users to invest.
"Weed about to make me a millionaire in 2021," said a post.
Along with the senators pushing for decriminalization of marijuana, another reason for the increase in stocks could be the high short interest ratios. High short interest ratios tell us how many of the shares are going to bet against the company.
Tim Welsh, founder and CEO of wealth management consulting firm Nexus Strategy had something to add and told CNBC, "This is totally on a script for the anti-establishment movement on WSB and Reddit. They are feeling their crowd-funding oats and are now aiming it at whatever social disruption they can cause. And no better historical symbol to amplify personal freedom and revolution than pot."
Talks about a Tilray and Aphria merger are ongoing, and interest in the stocks increases with the passing days.
For more in cannabis news, South Dakota judge stops cannabis legalization for the state.