Securities News, February 11, in the U.S. stock market on Wednesday, the stock price of cannabis companies soared, continuing a month-long upward trend because the market was betting that the Biden government would legalize cannabis, and recently Retail investors on the Reddit forum, which set off a trading frenzy, have also turned their targets to this sector In the “Wall Street Casino” (WallStreetBets) sub-forum of the Reddit forum, a post wrote that the share prices of Tilray Inc. (NASDAQ: TLRY) and Aphria Inc. (NASDAQ: APHA) still have more room to rise. In the past month, retail investors on the “Wall Street Casino” sub-forum have launched a campaign against GameStop (NYSE: GMP, often referred to as ” ” in China), (NASDAQ: AMC), and other companies The trading boom has driven the stock prices of these companies to soar This post on marijuana stocks gained the likes of about 10,000 other users in just 12 hours and pushed the stock prices of Tilray and Aphria up. As of the close, Tilray shares soared 50.91%, and Aphria also rose 10.74% from Spark Global Limited.
The forum has become a must-see content for traders of financial institutions because the facts that occurred in January proved that the concerted actions of some of the 8 million retail investors were enough to subvert hedge funds’ short bets on gaming stations and other companies Swaggystock brings together the sentiments of “Wall Street Casino” forum users about the stocks they are talking about, and its data shows that Tilray is the most promising one among cannabis stocks “I don’t think the story of retail gamblers will disappear overnight.” Mirabaud sales trader Mark Taylor (Mark Taylor) said. “I am observing price movements and trying to figure out all this The largest cannabis producer Canopy Growth Corp (NASDAQ: CGC) announced its earnings on Tuesday. The price of its U.S.-listed stocks rose about 3%, while the ETFMG index, which tracks cannabis stocks, rose 7.3%. Since the US presidential election in November last year, the index has more than doubled.
As with the previous surge in Game Station’s stock price, shorts’ interest in Tilray is rising. According to data from the analysis company Ortex, the company’s current net short position ratio is about 37%, compared to 27.3% at the end of January. The cannabis company is being acquired by Aphria in a complex reverse merger, and its stock price has risen by more than 400% since the deal was announced last December under the support of a new agreement to supply medical cannabis to the European market During the same period, Aphria’s stock price also rose by 243%, due to the wave of legalization of marijuana in several major states in the United States, and the Democratic Party’s commitment to legalize marijuana at the federal level, thereby driving the stock prices of companies throughout the industry to rise sharply In the Democratic Party of U.S. President Joe Biden (Joe Biden), some have promised reforms that may help marijuana companies gain more traditional ways of dealing with banks and open them to new institutional investors. This industry But some analysts believe that the valuations of these companies are becoming unreasonable, especially for Canadian companies such as Tilray, Aphria, and Canopy Growth, because these companies may benefit little from changes in US policy. of.
Canopy’s earnings report on Tuesday showed that the company’s adjusted losses narrowed in the third quarter, but analysts at Wall Street investment bank Stifel said this was not enough to justify its current valuation Another brokerage firm, Canaccord Genuity, pointed out that the enthusiasm related to the U.S. election led to “disproportionate capital inflows” to Canadian cannabis producers. (nebula)