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%
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