A worker examines cannabis plants on a Tilray farm.
Source: Tilray
A cannabis stock group is jumping again on Thursday as the crowd of Reddit traders continues to pile up among the top names.
Shares of Tilray have risen 13% in pre-market trading on Thursday, after meeting around 150% this week. Aphria has risen more than 11% in expanded trade, after gaining 57% this week. Aurora Cannabis has risen nearly 14% in premarket trading after a 50% rise since Monday.
Canopy Growth increases by 1% in the first operations, with which its weekly gain exceeds 20%. Sundial Growers increases 50% in premarket trading after a 160% weekly gain.
Cannabis stocks are up again on Thursday
The group of cannabis companies is getting the attention of the same WallStreetBets Reddit army that contributed to GameStop’s epic stalemate last month. Members of social media have posted messages about their profits on pot stocks and have encouraged other traders to join the climb.
“Here we go mine! TLRY to the moon !!!” a post said Thursday.
“Weedstocks, the new beloved of the WSB,” another post said Thursday.
Part of the discussion on Reddit has centered around the pending merger between Tilray and Aphria. Other social media users mention the decriminalization of the plant at the federal level under the new administration.
The movement of pot stocks could also be related to high short interest rates, which measure how many shares a company trades are used in betting against the company. GameStop and AMC Entertainment were targets of retailers in part because their high short interest made the shares attractive candidates for the so-called short squeeze. Tilray’s short interest is equal to 22.5% of the shares available for trading, according to FactSet.
Certainly, some of these retail investors have maintained these shares since their price action in 2017 and 2018 and express optimism about the new interest of other investors.
Several analysts covering cannabis companies told CNBC on Wednesday that this week’s price action has little fundamental basis.
Subscribe to CNBC PRO for exclusive information and analysis and live scheduling of weekdays from around the world.