Cannabis stocks tumble from multi-year highs as Reddit-fueled rally loses steam
Ben WinckFeb 12, 2021, 01:53 IST
Alberta Cannabis Inc/Handout via REUTERS
Cannabis stocks plunged on Thursday as optimism around federal decriminalization and Reddit-trader bullishness faded to profit-taking.
Tilray, Aphria, Aurora Cannabis, Cronos, and Canopy Growth all slid amid the broad sell-off.
Members of the Wall Street Bets Reddit page had been cheering the stocks higher as they did with GameStop in January.
Pot stocks tumbled from highs seen earlier in the week as momentum from casual traders uniting on Reddit sputtered out.
Tilray led the sector s losses, tumbling as much as 48%. Aphria and Aurora Cannabis fell 33% and 23%, respectively. Cronos sank 23% at intraday lows, and Canopy Growth plunged 24%.
The GameStop stocks: It s all everyone s been talking about lately.
After a number of hedge funds bet against the GameStop stock, which seemed to be going the way of Blockbuster and many other rental retailers, a Reddit forum named r/wallstreetbets encouraged members of its community to purchase stock in the company. Those that did helped cause a squeeze in the market, costing hedge funds huge and putting large sums of cash into investors pockets.
While many of those who purchased GameStop stocks have held onto their shares, a Cornell University student who invested put some of his winnings toward a very good cause: making kids smile.
Roaring Kitty LLC, named after his
YouTube channel. The firm was incorporated in 2014 in
Concord,
New Hampshire, but dissolved 10 months later, according to the tabloid.
Company documents list Gill as its sole agent and describe the firm’s purpose as providing
‘investment advisory services’.
Gill is also identifiable in a headshot posted on his current employer’s website, ‘In Good Company’, a wing of Massachusetts investment firm MassMutual. After becoming a multi-millionaire in a matter of days, Gill appears to have fully embraced the Wall Street Bets philosophy of ‘You Only Live Once (YOLO)’, throwing caution to the winds and putting their own, and even their family’s life savings on the line in the GameStop buying frenzy.
Trevor Noah has us in hysterics. yet again! Updated
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There has been an ongoing debate online about Game Stop and its value. This after a group of amateurs from Wall Street Bets Reddit group bought a large amount of shares in the video game retailer.
Such was the record breaking and unprecedented soar in share prices, resulting in huge profits for the buyers and devastating losses for a number of hedge funds, many people have been scratching their heads trying to figure out how this happened.