Some of the retail traders on Reddit’s WallStreetBets forum who helped spark GameStop stock’s brief parabolic pop have set their sights on public cannabis companies.
Canadian grower Tilray (ticker: TLRY) jumped about 51% on Wednesday. Aphria (APHA), which has a deal to merge with Tilray, was up only 10%, despite trading in step with the latter earlier in the year. 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% on Tuesday following the company’s quarterly earnings report.
Shares of U.S. growers Curaleaf Holdings (CURLF), Green Thumb Industries (GTBIF), and Cresco Labs (CRLBF) jumped between 4.5% and 7.5%. Cantor Fitzgerald analyst Pablo Zuanic told Barron’s that Canadian stocks have recently outperformed U.S. multistate operators, or MSOs, which could signal large interest from amateur Robinhood investors. Robinhood doesn’t offer trading in over-the-counter stocks, though other online brokers like Charles Schwab do.
“We believe a lot of this can be attributed to retail investors deciding to look for GME type opportunities in cannabis,” he wrote. “Also, MSOs are less liquid and trade OTC, while the Canadians are listed in US exchanges.” [Read more at Barron’s]