The cannabis-selling and manufacturing companies caught the attention of an army of Reddit investors who hiked the stock prices of the GameStop video game store chain in late January. Users have now switched to their securities, CNBC reports.
For example, one of the largest market players, Tilray, rose 51 percent on Wednesday, February 10. Other companies in the sector also saw gains, with Aurora Cannabis surging 20 percent, Aphria 11 percent, and Canopy Growth 6 percent.
The WallStreetBets Forum on Reddit became widely known after private investors decided to teach a lesson to hedge funds and began to actively buy up shares of the gaming retailer GameStop and other companies undervalued in their opinion, in particular, they managed to accelerate Gamestop by more than 880 percent.
Their interest, however, was not limited to companies: for example, in a few days, buyers were able to accelerate silver prices to a maximum in eight years, but investors began to gradually lose their interest in trading.
User activity played into the hands of Reddit itself: its valuation skyrocketed to $ 6 billion after the company raised $ 250 million in funding from existing and new investors. In addition, the site’s ad revenues almost doubled in annual terms at the end of 2020.