Those stock lovers on Reddit continue to influence markets. Is any business safe? Cannabis company Tilray recently merged with rival Aphria, and has seen a bump in its stock lately thanks to all the love from the Reddit crowd. While many U.S. citizens are praising the growing number of recreational and medical marijuana legalization laws, others are holding out for federal legalization. As Tilray’s stock sees gains, experts are wondering how trustworthy this investment really is.
Tilray is now up over 139% this year, which is a much higher gain than its rivals Canopy Growth and Cronos experienced. Right now, short-sellers have their sights on Tilray. If a stock quickly begins to rise, short-sellers have no choice but to purchase it back or face massive losses. It’s a big reason behind the recent spikes in AMC as well as Gamestop, along with a slew of other stocks the Reddit community has sunk their investing teeth into. Tilray’s situation shows that there’s more to cannabis than just going to the local smoke shop to buy some rolling papers… there’s money to be made all over the entire marijuana industry.
A Reddit user posted that Tilray “is a movement” noting that the company has “fantastic stats” and is “a worthy opponent to AMC” as a meme stock. Unfortunately, the short-sellers have been getting the upper hand as of late. Share prices have fallen from a high of $63.91 in February 2021 to just over $16 as of July 8th, 2021. This hasn’t discouraged backers though, as one Redditor on the site’s Tilray board posted to any would-be short-sellers: “Weed Stocks to Bears: I’m not leaving.” AMC and Gamestop survived similar dips in their stock price before rebounding (only to dip yet again).
Aurora and Sundial Growers were also mentioned along with the Reddit post pertaining to cannabis stocks. Eager Redditors also shared a clip of Leonardo DiCaprio’s inspiring speech to employees from the film The Wolf of Wall Street, in which his character Jordan Belfort exclaims he isn’t going anywhere.
The Reddit community appreciated the recognition from Tilray’s CEO Irwin Simon, who said in an interview with CNBC, “We love having them as part of our shareholder base” in response to questions about the online forum. One commenter referred to Simon as a “Diamond” saying, “ This company has a shot to literally rocket to the top as a fundamental and strong global brand.”