Shares of Tilray fell 40% after rallying more than 40% in the first three trading days this week.  According to CNBC, the recent rise in pot stocks was fueled by WallStreetBets Reddit army responsible for GameStop’s epic short squeeze last month. 

  • Aphria fell 25% after a 58% gain at the start of the week, Aurora Cannabis shed 17% after an almost 48% rally, while Canopy Growth declined by 17%.
  • The cannabis stocks were projected to extend their rallies before Thursday’s open and rose in premarket trading before falling sharply lower as the market opened.
  • Cannabis stocks analysts believe the recent price action was little influenced by fundamentals. 
  • Part of the Reddit discussions on pot stocks centered on the pending merger between Tilray and Aphria.
  • Possible legalization of cannabis at the federal and state level under President Joe Biden’s administration is also believed to be a catalyst for the recent rally.
  • High short-interest ratios in pot stocks could have similarly fueled the rally.

Cannabis stocks are currently declining.  TLRY is down 40.37%, APHA is down 31.53%, ACB is down 20.45%, WEED is down 21.84%

Tags: Tilray TLRY