After the recent news of redditors organizing to save Gamestop, the WallStreetBets community has set its sights on corporate cannabis. The long bet being that President Biden and his administration will push decriminalization even further of the plant. The most common stocks being Canandian companies as the United States has not legalized federally. Most notably, Tilray, Sundial Growers and Aphria are currently on a rollercoaster ride. Rising and falling by double digits within hours, investors are doing their best to show just how rigged this system is.
Cannabis stocks are going to be tougher than Gamestop. The plant is legal in Canada but illegal in the states. For the time being, this dichotomy means only Canadian companies can be listed on the exchange.
WallStreetBets and Cannabis
Top cannabis producer Canopy Growth Corp was up 3% after results on Tuesday, while
Tilray, being taken over by Aphria in a complicated reverse merger, has gained more than 400% in value since the deal was announced in December. In this same period, Aphria has gained 243%.
Shares of other cannabis producers have also surged to record levels, helped by a wave of legalization in major U.S. states and the Democratic party’s promise to decriminalize the plant at the federal level. Will WallStreetBets hurt or harm cannabis stocks?
Assuming changes and committee selections are to be believed, cannabis changes promised by some in President Joe Biden’s party could help give cannabis companies access to more traditional methods of banking over the next few years. The democratically controlled Senate have pledged to make cannabis legislation a key part of the current Congressional committee.
A New Hope
Legalization will definitely give cannabis stocks a stronger hold in the United States and open the sector to new investors As new hopes begin to rise in the battle for legal cannabis, watch corporate cannabis try to gain a stronger grasp of the force giving themselves more meaningful exposure. The money will be much needed as much of the country is still reeling from the COVID-19 shutdown. WallStreetBets cannabis relationship will continue.