Shares in the cannabis industry spiked on Wednesday, continuing a months-long bull trend due to anticipations of decriminalization under President Biden’s administration, as the Reddit group behind the recent GameStop frenzy started to promote the stocks.
One message on the forum, called WallStreetBets, told investors that Tilray Inc and Aphria Inc have much more room to go up.
That post was liked by about 10,000 people in only twelve hours and shares in those two companies increased by 21% and 10%.
Meanwhile, shares of pot producer Canopy Growth Corp went higher by 3% after Tuesday’s events. And the ETFMG cannabis tracker, which has already more than doubled since November’s elections, gained an additional 7.3%.
Tilray, which is currently merging with Aphria in what is known as a “reverse merger”, has shot up by more than 400% since the complicated merger was announced in December 2020. While Aphria has also advanced by 243%.
Shares of other cannabis companies have hit record highs, aided by legalization in many states and the Democrats’ promise to decriminalize the substance at a federal level.
Changes promised by some lawmakers could give the cannabis industry access to more banking products and open the industry to new investors.