Weed is the new WallStreetBets darling: Marijuana stocks flying high thanks to Reddit-fueled rally

Shares of several Canadian cannabis producers continued to soar on Thursday, spurred by a wave of legalization in major US states and the Reddit trading community behind the recent GameStop trading frenzy.

Pot producer Tilray’s stock surged 13 percent in premarket trading, after rallying about 150 percent this week. Aphria was up more than 11 percent in extended trading, following a 57 percent gain this week. Aurora Cannabis grew around 14 percent after a nearly 50 percent surge since Monday. 

The weed companies have been getting attention from the same WallStreetBets Reddit crowd that contributed to the epic short squeeze in video games retailer GameStop last month. Several posts on the social media forum on Wednesday showed users expressing optimism about the stocks’ upside while encouraging other traders to join in on the way up. 

“Weedstocks, the new WSB darling,” said one of the posts.

The Reddit users have been discussing the pending merger between Tilray and Aphria, as well as the decriminalization of marijuana at the US federal level under the new President Joe Biden administration.

One post, which told users that shares of Tilray and Aphria have more room to rise, was liked by around 10,000 other users in just twelve hours, sending the shares of the two companies soaring.

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