LONDON: Shares in cannabis companies surged on Wednesday, extending a months-long rally due to bets on decriminalisation under the Biden administration, as the Reddit community behind a recent trading frenzy talked up the stocks.
The forum has become a must-watch for traders at financial institutions since concerted action by some of its 8 million participants proved enough to overturn hedge fund “short” bets on GameStop and others in January. In line with some of the conditions that spurred the GameStop rally, short interest in Tilray was on the rise.
Aphria has gained 243% over the same period, as companies across the sector surged on a wave of legalisation in major US states and the Democratic party’s promise to decriminalise the plant at the federal level.