Cannabis stocks rose on Wednesday amid strong financial results, new deals, improved legalization prospects and attention from the online messaging platform Reddit.
ETFMG Alternative Harvest ETF (MJ) – Get the report, the largest cannabis ETF, at the last control rose by 9.4%
Tilray (TLRY) – Get the report, which revealed an agreement with British colleague Grow Pharma to import and distribute medical cannabis products in the UK, increased by 30.7%.
In December, Tilray and Aphria (RIGHT HERE) – Get the report revealed plans to join forces in a stock deal that will create the world’s largest marijuana production and distribution company.
Canopy growth (CGC) – Get the report rose 4.4%, a day after the company posted tax revenue in the third quarter that exceeded analysts’ forecasts. The report came amid a recovery in demand for beverage and vape with pot and pottery, even though the company generated a higher loss per share.
Aurora Cannabis (ACB) – Get the report, which is scheduled to report gains on Thursday, rose 11.8%, and Sundial Growers (SNDL) – Get the report jumped 38%.
Last week, Jazz Pharmaceuticals (JAZZ) – Get the report said it was buying cannabinoid therapy company GW Pharmaceuticals (GWPH) – Get the report for $ 7.2 billion in cash and shares.
How to trade Jazz Pharma after acquiring GW
The activity in the cannabis sector attracted the attention of Reddit traders.
The messaging platform has been flying in the market for the past few weeks, while retail investors have gathered around companies like GameStop (GME) – Get the report, AMC Entertainment (I HAVE C) – Get the reportand Inovio Pharmaceuticals (I DO NOT) – Get the report.
“The marijuana industry will be a $ 1 billion industry in 10 years, once Europe and Asia open,” a Reddit poster said. “There will be several companies worth over $ 100 billion, and my bet is that Aphria / Tilray will lead the way.”
Another poster, which claimed to be a long-term investor with Tilray and Aphria, (RIGHT HERE) – Get the report he added that “with the stupid things happening on the market, I still have a way out where the valuation would go crazy.”
“Seriously here, I’m super bullish, but $ 50 + I’m starting to get a little crazy, and if he gets there, I’ll probably start getting up,” the poster said. “The market goes completely crazy and reaches $ 100? I’m out lol.”
In addition, many investors may be optimistic that the substance can be legalized at the federal level by a Democratic president, Joe Biden, and a Democratic Congress.
Canopy Growth CEO David Klein said during the company’s quarterly conference that while Democrats control the White House and both houses of Congress, “we expect significant cannabis reform to take place during this Congress.”
Klein noted that last week several Democratic senators said that “the Senate is committed to introducing and enacting strong cannabis reform legislation.”
Earlier this month, Senate Majority Leader Chuck Schumer and two other Democratic senators said they would push for comprehensive legislation this year to end the federal marijuana ban.
“We anticipate that this legislation will include a comprehensive reform to ensure restorative justice, protect public health and enforce responsible taxation, while ending the cannabis ban,” Klein said.