Betting on Biden? Reddit fuels fresh surge in cannabis stocks

Shares in North American cannabis firms were heading for new highs on Thursday, with Reddit-inspired retail investors betting they could beat the short-sellers and benefit from new legislation that is expected under U.S. President Joe Biden.

Marijuana plants growing at GB Sciences Louisiana, in Baton Rouge, La., Tuesday, Aug. 6, 2019. (AP Photo/Gerald Herbert)

U.S.-listed Tilray and Sundial Growers, which have already doubled in value so far this week, were up 6% and 50% respectively in U.S. premarket trading, as European retail investors piled in to the rally.

Participants on the WallStreetBets forum on Reddit, which inspired a price spike in GameStop earlier this year that squeezed out Wall Street short-sellers who had bet on a price fall, have turned attention to U.S. and Canadian cannabis firms.

“The involvement of Reddit means a frenzy is the right word,” said Jasper Lawler, head of research at London Capital Group in London.

Source: Reuters