The Reddit WallStreetBets gang, along with Robinhood touting the hottest stocks being bought on its platform and an ever-growing army of day traders, have all piled onto “meme stonks” sending them to stratospheric heights.
Gen-Z and Millennials—and now the older crowd too—are jumping on the bandwagon. It now looks like they have moved on from GameStop and are setting their sights on hyping marijuana stocks.
According to Barron’s, public cannabis stocks have been growing higher to dizzying heights. Companies, such as Tilray (ticker: TLRY), jumped about 51% on Wednesday. Sundial Growers (SNDL) jumped 79%. Shares of Aurora Cannabis (ACB)—a name that’s been popular with retail traders in the past—rose 21%. Canopy Growth (CGC) closed up 6%, after it had already popped 12% early this week.
Pablo Zuanic, an analyst at Cantor Fitzgerald, said, “We believe the rally in Canadian names is mostly driven by retail investors, maybe fueled by Robinhood and Reddit, that’s really piling into the Canadian cannabis names in particular.” Zuanic added, “I’m not going to say it’s a GameStop type of case, but the Canadian rally is not entirely based on fundamentals.”
The cannabis companies, in addition to the social media surge, are seeing growth due to the intentions of the Democratic Party, which now has control of the White House and a majority in Congress, to legalize marijuana at the federal level. A number of states have already made it legal.
We’ll soon see the weed version of a Starbucks in every local neighborhood. With all of the drama and angst we’re going through, it wouldn’t be so bad for everyone to smoke a little pot, mellow out and chill, instead of arguing and fighting with each other.