Cannabis Company Stocks Hit Records Driven By Reddit and Biden
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The possible decriminalization of cannabis use with the arrival of Joe Biden to the presidency of the United States coupled with an amateur investor forum on Reddit extended the bullish streak of cannabis company stocks.
MarketWatch reported that Reddit group WallStreetBets, the Reddit forum linked to last month's stock gains from GameStop Corp, AMC Entertainment and other papers, was excited about the streak of Tilray Inc and Aphria Inc
Shares of Tilray Inc (NASDAQ: TLRY), one of the top companies in the cannabis industry, rose 38.5% in the middle of the second week of February 2021.
Stocks are getting a boost from potential growth in the US market where Democratic lawmakers have signaled their will on issues of marijuana legalization.
Another factor is the agreement to distribute medical marijuana in the UK and its possible growth abroad.
Last January, the legal use of marijuana for recreational purposes was authorized in fifteen states of the American Union such as Tennessee, Alabama and South Carolina.
This was reflected in shares of cannabis companies listed in the United States such as Canopy Growth, with a rise of 3%, or the tracker of cannabis shares ETFMG, where its value more than doubled since the presidential elections in November, gained 7.3%.