Less than two weeks after a retail-driven rollercoaster ride through Gamestop’s stock, Wall Street Bets is back at it again. This time they focused on Cannabis tickers. On Wednesday we saw big gains in three companies in particular. Sundial Growers shot up 79%, Tilray rose 51%, and Aphria went up a respectable 11%. By the end of Thursday’s trading window, Tilray was down 50%, Alphria dropped 36%, and Sundial finished with a 19% loss.
The hype for these stocks on the subreddit came rather quickly. On February 8th, each ticker had less than 1000 mentions. By the 10th, Tilray had almost 4000, Alphria had over 4000, and Sundial had over 8500.
This volatility was short-lived and didn’t see as much news coverage as the Gamestop and AMC plays. It could be that this was intentional, in order to secure quick profits and get out, before restrictions were placed on the tickers.
A lot of Cannabis stocks have had big gains since the election based on hopes that the Biden administration and a Democratic congress will push for nationwide recreational legalization.
Most analysts believe that these short-lived retail-driven pushes aren’t really a threat to the overall market. While they have the power to get a few tickers moving, the market should be just fine.