A worker examines cannabis plants on a Tilray farm.
A group of marijuana stocks jumped again Thursday as the Reddit trading crowd continued to pile into the soaring names.
Tilray’s shares were up 13% in premarket trading on Thursday after rising about 150% this week. Aphria is up more than 11% in expanded trading, up 57% this week. Aurora Cannabis is up nearly 14% in premarket trading after rallying nearly 50% since Monday. Canopy growth is up 1% in early trading, which translates to a weekly profit of more than 20%.
Cannabis stocks rise again on Thursday
The group of cannabis companies is attracting the attention of the same WallStreetBets Reddit army that contributed to the epic short squeeze on GameStop last month. The social media members posted messages about their profits in the pot stocks to encourage other traders to join in on the way to the top.
“Here we go my! TLRY to the moon !!!” said one post.
“Weedstocks, the new WSB darling,” said another post.
The movement in pot stocks could also be related to high short interest rates, which measure how much of a company’s traded stocks are used for betting against the company. GameStop and AMC Entertainment have been targeted in part by retailers because their high interest in shorts made the stocks attractive candidates for what is known as a short squeeze. According to FactSet, Tilray’s short stake is 22.5% of the stocks available for trading.
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